Provisional tax is paid instalments relating to the current year mainly in advance of the end of year deadline. Since it can be confusing, we help you understand how it is calculated and when payments are due.
The “standard” method employed by default by IRD bases the amount due on the previous year’s residual tax due after credited any tax deducted at source. The calculated amount is then payable in instalments during the current year.
Other options available, particularly applicable if your situation is not the same as the previous year of if your income is seasonal include the estimation method, the AIM accounting method and the ratio method.
Since penalties and interest may apply, and revert to the earliest due dates if applicable it is important and economical to get this right and this is where we provide assistance and guidance.
Contact us today for a no-obligation consultation.
