Reminder: First provisional tax instalment for tax year 2022
Updated: Aug 20
We would like to remind you that the first provisional tax installment payment deadline for the 2022 tax year is July 31, 2022.
Provisional tax payment obligation
Based on their anticipated annual taxable income for the tax year 2022, the following people are required to pay provisional tax:
Individuals with taxable income other than salaries, pensions, dividends and interest, and
companies with taxable income
People who do not have any taxable income are not required to pay provisional tax.
Payment of provisional tax
Applying the appropriate tax rates (depending on whether the taxpayer is an individual or a company) to the anticipated taxable income for the year after deducting any foreign tax credits yields the provisional tax. The amount is due in two equal payments as follows:
Effective deadline (no penalty)
31 July 2022
31 August 2022
31 December 2022
31 January 2023
The provisional tax can be paid on time through the following electronic platforms:
online banking, using the specific Payment Reference Number (PRN) previously created through the Tax Portal of the Tax Department (TD), or
jccsmart.com (JCC), by selecting Tax Department / Self Assessments / Temporary Assessment (Self-Assessment) - (0200).
Payments received after the effective date must be made through online banking and will incur a 5 percent late fee in addition to interest at the current rate of 1,75 percent per year (calculated on a completed months basis). If the tax is not paid two months after the statutory deadline, the TD may add a further penalty of 5 percent (i.e. for the 1st instalment, the penalty will be imposed from 1 October onwards).
Any discrepancy between the actual tax due and the temporary tax already paid for the year 2022 is due on August 1st of the following year.
10% additional tax if underestimation occurs
The taxpayer must pay an additional tax equal to 10% of the difference between the final tax due and the provisional tax paid if the provisional taxable income declared is less than 75% of the final taxable income for the year.
Revised provisional tax calculation
Up until December 31, 2022, taxpayers may adjust their provisional tax calculation in either direction. Interest is due on the difference between the revised amount payable and the amount that was initially declared and paid in the event of an upward revision. It should be noted that Forms TD.5 (for individuals) and TD.6 (for companies) must be submitted in order to make downward revisions.
*DISCLAIMER: This article and its publication are intended to provide a brief introduction and act as a general guide. This is provided for information purposes only and cannot be utilized as a substitute for professional advice. This document does not represent a legal opinion and one must not rely on it without receiving independent advice based on the particular facts of its own case. No responsibility is accepted by the author or the publishers for any loss suffered from acting or refraining from acting based on the contents of this publication.
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