We would like to remind you that the payment deadline for the 2nd provisional tax instalment for tax year 2023 is the 31st of December 2023.
Payment obligation
The following persons should consider whether a provisional tax payment would arise based on their expected annual taxable income for tax year 2023:
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.
Payment dates
The provisional tax is payable in two equal instalments, as following:
Provisional tax instalments | Statutory deadline | Provisional tax instalmentsStatutory deadlineEffective deadline (No interest/penalty) |
1st instalment | 31 July 2023 | 31 August 2023 |
2nd instalment | 31 December 2023 | 31 January 2024 (if not revised) |
Late payments (made after the effective deadline) are subject to a 5% penalty as well as interest (at 2.25% per annum for 2023).
If the estimated tax paid for 2023, 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.
