Our office would like to inform you that the calculation of provisional taxes for individuals and legal persons for the tax year 2023 should be prepared on or before the 31st of July 2023.
Companies expecting to have taxable income and individuals expecting to earn taxable income other than employment income are required to calculate provisional taxes.
The provisional tax is due in two equal instalments on or before the following dates:
- 31 July 2023: Payment of the first instalment.
- 31 December 2023: Payment of the second instalment.
If the tax is not paid before the end of the month following the month the instalment is due (i.e. 31 August 2023 and 31 January 2024 respectively),
interest is payable at the rate in force, which is currently
2.25% per annum (p.a.), plus
a monetary charge of 5%. The annual interest is imposed on a complete monthly basis.
Payments are made via
JCCsmart and through online banking using the payment reference code from the
Tax Portal of the Tax Department after you create the liability.
If the temporary income declared provisionally for 2023 is
less than 75% of the final taxable income of the year, then any balance of tax payable will be subject to a
10% surcharge. It is noted that the final tax liability for the year 2023 should be settled by 1 August 2024.
Revised computations of provisional tax can only be calculated
at any time before 31 December of the tax year 2023. In case of revision, the Commissioner of Taxation will need to be notified in writing by completing and submitting a revised provisional tax declaration.
Upward revision will create an increased provisional tax liability and as the effect the underpayment in the first instalment already paid will carry interest at 2.25% p.a.
Downward revision can be made up to the amount already paid through the first instalment and in that case, no interest or penalty will be imposed.
You are therefore requested to make the necessary arrangements to send us the expected taxable income for the calculation of provisional tax and the payment of the taxes either through our office, by sending us the respective payment to our client’s bank account
not later than the 27th of July 2023, or by yourselves. The estimated chargeable income is subject to tax payable at the rate of
12.5% for companies and
up to 35% for individuals.
Our Tax Department is at your disposal for any further clarifications, information, or assistance you will need with the calculation of your provisional tax.