• This forecast should be based on your business trends including the macro – economic and environmental factors and the nature of one’s business. The most recent sales figures sometimes provide a reasonable basis for estimating the income for the year.

  • For the purpose of calculating the Provisional Tax for each Quarterly Payment Date (QPD), clients are required to estimate the annual tax due and calculate the respective percentage of tax to be paid for each quarter.  Currently the percentages are:

    10%          due 25th  March

    25%          due 25th  June

    30%          due    25th   September

    35%          due   20th  December

    For example the actual amount due at the quarter must be arrived at after deducting the QPDs already paid from the amount due e.g. say at a 25 June of the year the estimated taxable income is = $2 375 000

    Estimated tax payable = ($2 375 000 X 25.75%) = $611 562.50

    QPDs due as at 25 June = {35% (10% +25%) of $ 611 562.50} = $214 046.88

    The remittance form for Provisional Tax payments –is form ITF 12B which must be completed in respect of each QPD payment.

  • The margin of variance should not be more than 10% of the tax payable when calculating the Income Tax due for the year.

  • Yes, adjustments can be made every quarter. Any underpayment of QPDs must be corrected as soon as it is realised during the course of the year in order avoid accumulating interest.

  • A garnish is used as a last resort in cases where the taxpayer has been uncooperative. A garnish may be placed on the client’s bank accounts as well as with the client’s debtors.