The second installment of provisional income tax (QPD) for the year is due on Friday 25 June 2021. This installment (payable in the currency of trade) is calculated at twenty five percent of the projected annual tax on income from trade and investment.
Projected annual taxable income must be based on year to date figures rather than income and expenses for the quarter. This way, abnormal income and expense trends are factored into the projection thereby computing a moving average of sorts. The rest of the QPDS for the year are payable as set out below.
- Second QPD – 25 percent payable on 25 June
- Third QPD – 30 percent payable on 25 September
- Fourth QPD – 35 percent payable on 20 December
Income tax for the year is expected to be fully paid by December. If not, interest is charged on underpaid QPDs at the rate of twenty five percent per month or part thereof.
The return (ITF12B) for provisional tax payment for the quarter must be submitted to the taxation authority on the said date.