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Provisional tax payers

If you pay your provisional tax by the standard method, the formula to calculate your provisional tax liability will change from 1 October 2008. You will need to reduce your residual income tax (RIT) by $730 before applying the standard uplift. The new formula will be:

(2007-08 RIT - $730) x 105% or 110% if you are using 2006-07 RIT.

This new provisional tax liability is then used when working out provisional tax instalments due after 1 October 2008.