Our office would like to inform you that the calculation of provisional taxes for individuals and legal persons for the tax year 2020 should be prepared on or before the 31st of July 2020.
Companies that are expecting to have taxable income and individuals that are 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 2020: Payment of first instalment.
- 31 December 2020: Payment of 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 2020 and 31 January 2021 respectively), interest is payable at the rate in force, which is currently 1.75% per annum (p.a.), plus a monetary charge of 5%. The annual interest is imposed on a complete month basis.
Payments are made ONLY via JCCsmart at the webpage www.jccsmart.com.
If the temporary income declared provisionally for 2020 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 2020 should be settled by 1 August 2021.
Revised computations of provisional tax can only be calculated at any time before 31 December of the tax year 2020. 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 effect the underpayment in the first instalment already paid will carry interest at 1.75% p.a. Downward revision can be made up to the amount already paid through 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 2020, 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.
Contacts:
For additional information, please contact: