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IR833 Provisional tax

If your tax to pay on the taxable profit from your property sale is more than $2,500, you may be required to pay provisional tax in the following tax year.

If you’re not likely to have the same amount of tax to pay, you could consider estimating your provisional tax for the following year. Because there are penalties for under-paying provisional tax, Inland Revenue recommend you get professional advice about doing this.

For more information read Inland Revenue’s Provisional tax (IR289) guide.

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