AIM - Accounting Income Method
The new Provisional Tax Accounting Income Method (AIM) will be implemented from 1 April 2018. This effects those small to medium businesses with turnover less than $5 million per year.
The new method will allow businesses to align provisional tax payments when the file and pay their GST.
This makes accounting software like Xero and MYOB essential to help track and file everything easily and correctly, as they can calculate your tax payments throughout the year.
Tax payments will be based on accounting income instead of being a separate calculation.
AIM is not compulsory. But businesses which choose to use AIM will make payments more regularly throughout the year, a great option for those businesses who find it hard or confusing to meet all the different tax dates.
AIM is a significant step forward to making tas obligations easier for small to medium business.
For more information, or if you have any questions, give our team a call today 021 2967 5550 or check out the IRD website’s article – Click Here