PAY TAX
Tax Planning at Scale
At this revenue level, reactive tax management isn’t enough. Here’s what proactive tax planning looks like and why it matters.
Tax Planning for NZ Businesses Turning Over $500k to $3m
At this stage, tax is no longer just something you deal with at year end. It needs to be part of how you run the business throughout the year.
Provisional tax
You’ll be paying provisional tax in instalments, and the amounts can be significant. Getting these right — or adjusting them when your business performance changes — is important for cash flow. Overpaying ties up cash unnecessarily. Underpaying can result in penalties.
Year-end planning
The months leading up to 31 March are a good time to review where you’re tracking and consider whether there are legitimate steps to take before year end. This might include timing of purchases, reviewing your salary and dividend structure, or ensuring your shareholder current account is in order.
The value of proactive advice
The difference between reactive and proactive tax management at this level can be meaningful — both in terms of the tax you pay and the cash flow impact of when you pay it. If you’re not already having regular conversations with your accountant about tax strategy, now is the time to start.