NZ AIM Provisional Tax: Who Can Use It and How It Works
17 October 2026 · Guide · Not tax advice
Educational information only. Not tax, legal or financial advice. We are not Inland Revenue (IRD) or ACC and are not affiliated with them. Check ird.govt.nz or ask a qualified tax agent. Sources read October 17, 2026. Anything marked expected should be re-checked. Examples use made-up numbers. This page contains no affiliate links.
Short answer: The IRD says the accounting income method (AIM) is available to individuals and companies with a yearly turnover under $5 million. You use accounting software that works out your provisional tax and file a statement of activity showing profit or loss. The IRD says you'll only pay provisional tax when your business makes a profit, and no use of money interest is charged if you pay in full and on time.
When the IRD says AIM may suit you
Growing business; new to business; income down significantly and hard to estimate; irregular or seasonal income; hard to forecast; you have or want accounting software. Compare with the standard option and use of money interest.
How it works
- Eligibility: individual or company; accounting software; turnover under $5 million a year. Software set-up includes a step confirming eligibility.
- Statement of activity: tells the IRD whether you made a profit or loss; it can include depreciation, trading stock, losses and shareholder salaries.
- Payments: your AIM software works out how much to pay.
- You can sign up any time during the year.
Losses and refunds
If your business makes a loss you can get a refund straight away and you don't need to file an Annual imputation return (IR4J) or wait for year-end. The statement of activity also tells the IRD if you overpaid.
Staying in AIM
- You need to choose AIM each year: AIM customers are automatically switched to the standard method at the start of each tax year; if you want to continue, you can, and your account is updated when you file your first statement of activity of the year.
- If you miss two statements of activity the IRD contacts you; if you keep missing them you may be moved to the estimation option and may be charged use of money interest.
Dates
According to the IRD site banner we saw on 17 October 2026, AIM instalments are due on 28 October (March balance date) and 30 November (March balance date, filing GST monthly). Banner dates change through the year, so check ird.govt.nz for your own due dates. The schedule for later instalments and for other balance dates wasn't on the pages read, so it is expected to follow the IRD calendar (see calendar).
Made-up example
A new sole trader with a $20,000 profit in the first half of the year and a loss in the second pays on the profit and gets a refund when the statement of activity shows overpayment.
FAQ
Can I use AIM without software? The IRD pages say AIM uses accounting software.
Is AIM compulsory? No; it is an option.
What we could not verify
- The full eligibility list (e.g., partnerships, trusts, transitional years) and the classes of taxpayer excluded: not read (the Income Tax Act provisions on excluded classes and on turnover over $5 million by approval were not read).
- The calculation method (rate applied to accounting profit) and instalment dates for each balance date: not read.
- Whether AIM interacts with Investment Boost or other 2026-27 changes: not read, so any link is expected at most and not claimed here.
- IR1054 (AIM guide, 2019): not read.
- Exactly when use of money interest applies after missed statements.
Sources (official)
- IRD, Accounting income method (AIM) — official page (read in full October 17, 2026; no review date shown)
- IRD, Work out provisional tax using AIM — official page (read in full October 17, 2026)