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14.3. Calendar of Important Compliance Events

Tax Year

The tax year is the calendar year. However, a different tax year may be allowed subject to approval from the tax authorities.

Tax Return Filing

The annual tax return must be filed on or before 1 May, following the relevant tax year.

Tax Payments

The due date for paying any outstanding income tax is 1 November following the tax year.

Provisional Tax

It is payable in 2 equal instalments on 1 June and 1 December each year. The provisional tax is based on the company's preceding year’s tax liability. Companies are required to estimate their income to compute the provisional tax liability.

However, if the company’s estimated provisional tax liability is lower than the previous year’s income and 80% of its actual income, then the company will be liable for an additional tax of 10% on such underestimated provisional tax.

No provisional tax is payable by companies if the preceding year’s tax liability does not exceed NZD 5,000, (increased from NZD 2,000 effective from 1 January 2020).

COVID-19 Emergency Measures

Cook Islands published the ‘COVID-19 Economic Response Plan’ which provides the following tax relief measures:

  • Provisional Tax Adjustments – Re-estimates of provisional tax obligations will be permitted. If circumstances have changed due to the COVID-19 pandemic, early refunds can be arranged in case of overpayment of provisional tax; and
  • Instalment arrangements can be set up for businesses that are unable to pay their tax. Alternatively, applications for a write-off due to serious hardship can also be made.

Availability of E-Filing

The tax returns can be filed electronically at the following web portal https://tax.cookislands.gov.ck/.