How does Tax Financing work?

First, you or your tax practitioner need to register you with TPS. Our online system will send you or your practitioner login details that will enable your account with TPS.

Once you are registered you can submit a tax finance request prior to the date of your next provisional tax payment is due. You pay a finance fee (based on TPS' competitive interest rates) and TPS arranges for the amount you have financed to be deposited into the TPS tax pool on your provisional tax payment date.  This deposit is held in the pool for you until the maturity date of your loan;

TPS contacts you prior to the maturity date and asks you how much of the tax deposit you require.  If you have overestimated your tax payment you do not have to repay the whole loan.  You just repay the amount of provisional tax as you need;

On the maturity date, you pay the face value of the tax deposit you require into Public Trust's trust account and the tax deposit is transferred to your taxpayer account at the IRD.

The date of the tax deposit transferred into your taxpayer account is the date that it was paid into the tax pooling account rather than the date of the transfer.  This means that you satisfy your obligation to pay your tax on your provisional tax date and do not have to pay the IRD any use of money interest or other penalties.

Contact our team if you have any questions.