We would like to remind you that the payment deadline for the 2nd provisional tax instalment for tax year 2024 is the 31st of December 2024.
Payment obligation
The following persons should consider whether a provisional tax payment would arise based on their expected annual taxable income for tax year 2024:
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 | Effective deadline (No interest/penalty) |
1st instalment | 31 July 2024 | 31 August 2024 |
2nd instalment | 31 December 2024 | 31 January 2025 (if not revised) |
Late payments (made after the effective deadline) are subject to a 5% penalty as well as interest (at 5% per annum for 2024). An additional penalty of 5% may be imposed by the TD if the tax remains unpaid two months after the statutory deadline (i.e. for the 1st instalment, the penalty will be imposed from 1 October onwards).
If the estimated tax paid for 2024, 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.
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