With the outbreak of the coronavirus disease (COVID-19) being declared a Public Health Emergency of International Concern, IRD has provided a tax relief guideline for paying taxes during this time.
If you have been unable to pay outstanding tax due to hardship, then you may be able to set up an instalment arrangement in myIR for GST, FBT, income tax, resident withholding tax, Working for Families, gaming machine duty and tax credit claims. In cases of serious hardship, you may also be eligible for a write-off when you don’t expect that you’ll be able to pay the full amount owing.
Extensions for late filing and late payment have also been made available for certain income tax returns. If a payment has been made late due to the coronavirus, then the normal penalties for late payments may be remitted.
If your circumstances have been affected by the coronavirus, then you may be able to make a re-estimation of provisional tax. If provisional tax has been overpaid prior to re-estimation, early refunds can be made.
Paid parental leave is also an option if you have a baby or are expecting one, or if you have been the primary carer for a child under six months since 1 April 2016 or after. If you normally make child support payments but are struggling to meet the due dates for the payments, you can contact the IRD to see the options available for you. You may be eligible to reduce the assessment upon a re-estimation of your income if it has been affected by the coronavirus.
If you receive Working for Families Tax Credits entitlements, you may be able to receive increased payments or an increase in the frequency of your payments if your family income has decreased due to the coronavirus situation.
