Provisional Tax - What is it & When do I need to pay it?
— Monday, September 29, 2014
Provisional Tax.
The first 2015 provisional tax payment date, if you are on a 2 monthly GST basis has now been and gone, with the next one being 15 January 2015. If you file GST on a six monthly basis, then your first 2015 provisional tax payment is fast approaching.
Around this time of year some questions may arise as to why? How much? And who needs to pay provisional tax?
Everything you need to know:
- Provisional Tax & terminal tax are actually income tax payments. The different terms relate to when you actually make the payments.
- Unless your circumstances change dramatically during the year then your Provisional Tax calculations will be based on the amount of tax payable from last year’s income tax return, plus an uplift of 5%.
- If you are registered for GST on a 2 monthly basis, then your provisional tax payment dates are the 28th of August, the 15th of January, and the 7th of May. If you are registered for GST on a 6 monthly basis, then your provisional tax payment dates are the 28th of October and the 7th of May.
Provisional Tax should not be daunting. The optimist would say “paying tax is a good thing, as it means making money”.
Budgeting for these payments throughout the year is important. However if cash flow is tight, contact one of the All Accounted For team as we can tailor the best solution for your circumstances.
Written by Blake Chamberlain
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