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NZ First Year in Business: Tax Due 7 February

17 October 2026 · Guide · Not tax advice

Short answer: The IRD says that if you use the standard, estimation or ratio option you do not pay provisional tax in your first year of business. With AIM you pay only when you make a profit. But the first year is not tax-free: the income tax is usually due by 7 February the following year, or 7 April if you have an agent. That can mean paying year-one tax at the same time as year-two provisional tax.

Why this catches people out

Your first-year tax is due after the year ends, while provisional tax for your second year is also falling due. The IRD says you may need to pay both around the same time.

Voluntary payments and the early payment discount

You can make voluntary payments during the first year to spread the cost. You may get an early payment discount if you meet all of these: - You are self-employed, a partner, or an owner of a look-through company and get most of your income from the business. - You make a voluntary payment before the end of the income year, or use tax pooling funds for the year. - You apply on or before the date your return must be filed. - You have no obligation to pay provisional tax in that year or the 4 years before. The IRD says the rate for the 2027 income year is 4.25% (calculated from the use-of-money-interest credit rate at 31 March of the previous tax year plus 2%). Past rates it lists: 6.30% (2026), 6.67% (2025), 6.67% (2024).

IRD's example (2025 figures)

Voluntary payments of $5,000 and RIT of $8,000: the discount applies to the lesser of the payments and 105% of RIT, so $5,000 at 6.67% = $333.50.

Student loans

If you are self-employed with a student loan you may have to make repayments in your first year; the IRD asks you to contact them.

When provisional tax starts

The IRD's provisional tax page says you pay provisional tax if you had more than $5,000 of tax to pay at the end of the year on your last return, from the following year.

Related

Terminal tax 7 February 2027 · Provisional tax: standard option · Student loan repayments · Tax calendar

FAQ

Does this apply to the year to 31 March 2027? Only if it is your first year; the 7 February 2028 date would then be expected (not yet confirmed).

Do I get the discount if I have a student loan? Not addressed on the page.

What we could not verify

• Dates for the 2027 first-year tax (7 February 2028 or 7 April 2028) are expected, not confirmed.
• Student loan rules for first-year self-employed.
• IR325 fact sheet not read; the discount's full conditions beyond the page.

Open the tax calendar and estimator