• 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 final 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.

  • Yes, a garnish order may be placed on the taxpayer’s bank accounts as well as with the taxpayer’s debtors.

    • . Registration must be done in TaRMS
    • • Taxpayer profile > Tax Type > New Tax Type - select VAT
    • • Select Local / Export Sales i.e. this is the most common
    • • Effective Date of Registration(The first day of the next month after reaching of threshold)
    • • Select Compulsory Registration (If the threshold has already been met) or Voluntary Registration (If the threshold is yet to be met)
    • • Taxable Turnover (total turnover in USD for the past 12 months)
    • • Put nil i.e. zero (0) on the other fields like exempt turnover, the value of exports or imports, if not applicable
    • • Preferred Tax Period (If classified D) - Select not applicable
    • • Select Assets the company has and put their values.
    • • If it’s Compulsory Registration Input “sales schedule for the past 12 months” in US$ on the system platform.
    • • If it’s Voluntary Registration Input “sales schedule for the next 12 months”in US$ on the system platform
    • • Attach All the above-mentioned documents where the page says “Attach file”

    Upon registration, every registered operator will be issued with a certificate of registration and such certificate shall be displayed prominently. This will allow for easy identification of traders registered for VAT.