Set up NZ Tax

Step 3: Enter Tax Settings

Tax in Practice Manager allows you to electronically file income tax and GST returns on behalf of your clients with the Inland Revenue Department.

These are the steps required to enable the tax module:

  1. Become a tax agent
  2. Register for E-File
  3. Add a tax agent in Practice Manager
  4. Request to enable the tax module

Key Learning Points

  • Complete and submit the request form IR791 to become a tax agent.
  • Before you can send returns to Inland Revenue, register for E-File using the form IR798. Inland Revenue will provide you with a Location and Encryption ID. It may take up to a week for Inland Revenue to send this information to you.
  • Use your IRD number, Location and Encryption ID to add your tax agency in Practice Manager.
  • To enable E-File, email a request to our support team. We will establish the connection on your behalf with the Inland Revenue test environment and send you through the confirmation reports. Forward the reports to Inland Revenue to enable your E-File ability.
  • Once Inland Revenue gets back to you, send us an email and we'll enable the tax module on your account.

Tips & Tricks

  • Add your tax agency before you start adding clients. You can include the tax agent in your client import file, if you choose to import your clients. You will learn about this in Step 5: Set up clients.
  • You can set up more than one tax agency in Practice Manager, if required. Ensure you link your clients to the correct agency.

What should I do now?

  • If you are not a registered tax agent yet, then go to the IRD website and follow the instructions to apply to be a tax agent.
  • Add your tax agent in Practice Manager, once you have received your Location and Encryption ID from the IRD.
  • Contact the support team to enable e-filing in your Practice Manager.
  • Proceed to Step 4: Enable Xero Interface.

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