Hi. I am a provisional tax payer for the first time due to earning rental income greater than the threshold. I received (& was taxed on) a bonus from my employer in June this year. How do I treat the bonus payment on the provisional tax return (period 1)? If I include it as part of taxable income, my tax payable is inflated as bonuses are taxed differently from normal income. Please advise.
The employees tax paid on this bonus will be included in the employees tax already paid so this should offset the extra tax due to the inflated amount. However it is a problem, and a lot of taxpayers do experience this with bonuses. For the taxable income amount on the IRP6, take your salary and x 12 and then add the bonus. Does the employees tax already paid appear?
Tedsays: 23 August 2013 at 17:30
Hi. Thank you for your assistance, all is in order now.
TaxTimsays: 23 August 2013 at 17:30
Great, glad we could help!
Get Tax Deadline Reminders, News and Tips
We'll tell you when you need to file, along with tax tips and updates.