The second instalment of provisional income tax (QPD) for the year is due on Saturday 25 June 2022. This instalment (payable in the currency of trade) is calculated at twenty five percent of the projected annual income tax on profit from trade and investments.
Projected annual taxable income must be based on year to date profit rather than results for the respective quarter. This ensures that revenue and expenses trends are factored into the annual projection.
It is also advisable to calculate the QPD using the cumulative quarterly rates and deducting the provisional tax already paid. Our accounting system, AccPro Financials automatically calculate the QPDs using the quarterly percentages set out below.
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 income tax payment for the quarter must be submitted to the taxation authority on the said date.