tax account typesWhen you make a payment to IRD you will need your IRD number as a reference. Make sure you choose the right account type when making payments, as mis-coding your payment could result in IRD refunding the payment or missing future tax payments which may cause penalties to be charged by IRD.

GST and Provisional Tax (GAP)

The correct use of this tax type for paying the IRD relates to a single payment for GST and provisional tax made to IRD that matches the total filed in the GST return. This tax type should only be used for provisional tax when the provisional tax figure is included in the GST return filed with IRD. IRD will take this single payment and split it between the filed GST and the provisional tax figure, where it is also filed on the GST return, will be moved to the income tax account. Where the provisional tax figure is not filed in the GST return, IRD will refund the over payment. The practice of filing the provisional tax payment in the GST return is seldom used now-a-days. This was previously the norm when sending in a cheque for a single payment on the due date rather than sending multiple cheques to the IRD. The IRD no longer accept cheques and prefer all filing and payments to be made electronically.

Income Tax (INC)

When paying provisional or terminal tax to the IRD, the correct tax type to use is Income Tax (INC) and the correct 31 March year-end date – which may be different to your entity’s balance date.