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Using the AIM provisional tax option

New Zealand only

The Accounting Income Method (AIM) is a new way of calculating provisional tax for small businesses in New Zealand.

This page covers AIM eligibility and set up. For more information on filing an AIM statement of activity, see Filing an AIM statement of activity (New Zealand).

Businesses choosing to use AIM will make more frequent provisional tax payments based on their actual current earnings rather than calculations on last year's income. This makes AIM a great 'pay as you go' option for growing businesses or businesses with fluctuating, seasonal income.

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How does AIM work?

When it comes time to pay provisional tax, MYOB will use AIM to calculate what you owe straight from your chart of accounts and gather the info into your statement of activity. This is then sent to Inland Revenue.

Note that a statement of activity isn't an income tax return and isn't processed as one. This means if you make a mistake you can simply fix it in the next statement.

AIM eligibility

You first need to check that your business is eligible to use AIM. See the table below for the AIM requirements. If you have any questions, please see the Inland Revenue website or speak with your accountant.

If you...

then...

have turnover under $5 million and opt in before your first provisional tax date for the year

You can use AIM

have investments in foreign investment funds (FIF) or controlled foreign companies (CFC) for the income year, or

Sorry, you can't use AIM

are in a transitional year (a year in which you've changed your balance date), or

Sorry, you can't use AIM

are any of the following:
partnership, trust, Māori authority, superannuation fund, portfolio investment entity (PIE)

Sorry, you can't use AIM

Setting up AIM in MYOB

After confirming your eligibility, you need to map each account in your ledger to the AIM statement of activity. This is done from within the GST and provisional tax page in MYOB.