Provisonal Tax – A tip from Accountants First Iran Kamal

Is provisional tax is a separate tax?

It is not. But it is a way of paying income tax as income is recieved during the year.
The criteria for paying provisional tax is if your income tax to pay for the year is over $2,500 then you will have to pay provisonal tax for the following year.

You can make installments with your GST returns if you are registered. The amount of provisional tax to pay is determined based on your expected profit or your GST taxable supplies and also depends how you choose to work your installments out.

At the end of the year when final profit is calculated either you pay or a refund will be issued back to you.

Calculation is done in three ways : Standard, Estimation & Ratio Option.
Standard due dates are 28 August 12 , 15 Janauary 12 & 7 May 13. (based on 2013 year)

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