Payment of 1st provisional tax instalment for 2021
We would like to remind you that the payment deadline for the 1st provisional tax instalment for tax year 2021 is the 31st of July 2021.
The following persons should consider whether a provisional tax payment would arise based on their expected annual taxable income for tax year 2021:
Individuals with taxable income other than salaries, pensions, dividends and interest, and
Companies with taxable income.
Kindly note that, persons with no taxable income, do not have an obligation to pay provisional tax.
The provisional tax is payable in two equal instalments, as following:
Late payments (made after the effective deadline) are subject to a 5% penalty as well as interest (at 1.75% per annum for 2021).
If the estimated tax paid for 2021, is lower than 75% of the actual tax liability calculated based on the audited financial statements for the year, then a surcharge (penalty) of 10% will apply on the underestimated tax payable.