Companies that expect to have taxable income for the year 2021 must pay the first instalment of the temporary tax.

The tax is payable in two equal installments – 1st by 31 July 2021 and the 2nd by 31 December of 2021. The payments are made until 31 August 2021 and 31 January 2022 respectively. Late filing of the return and payment of tax will attract interest and penalties.

The aim of payment of provisional tax is to avoid the 10% “additional tax”. It is calculated as 12.5% on the taxable income. To achieve this, however, your estimated taxable income must be at least 75% of the final taxable income as it will be determined by audited financial statements.

We are at your disposal for any further information you may need.