We would like to remind you that the payment deadline for the 2nd provisional tax instalment for tax year 2022 is the 31st of December 2022.
Obligation for provisional tax payment
The following persons have an obligation to pay provisional tax, based on their expected annual taxable income for tax year 2022:
Individuals with taxable income other than salaries, pensions, dividends and interest, and companies with taxable income.
Persons with no taxable income, do not have an obligation to pay provisional tax.
Payment of provisional tax
The provisional tax is calculated by applying the relevant tax rates (depending on whether the taxpayer is an individual or a company) on the expected taxable income for the year, after taking into account any overseas tax credits. It is payable in two equal instalments, as follows:
Provisional Tax Instalments
Effective Deadline (No interest/Penalty)
31 July 2022
31 August 2022
31 December 2022
31 January 2023
The timely payment of provisional tax can be made through the following electronic platforms:
jccsmart.com (JCC), by clicking on Tax Department / Self Assessments / Temporary Assessment (Self-Assessment) - (0200), or
online banking, using the unique Payment Reference Number (PRN) previously created through the Tax Portal of the Tax Department (TD).
Payments made after the effective deadline can only be made via online banking and will be subject to interest at the current rate of 1,75% per annum plus a 5% penalty on the tax due. An additional penalty of 5% may be imposed by the TD if the tax remains unpaid two months after the statutory deadline.
In case a taxpayer revises its provisional tax calculation, any outstanding provisional tax will need to be settled until 31 December 2022.
10% additional tax in case of underestimation
In case the provisional taxable income declared is less than 75% of the final taxable income for the year, the taxpayer is required to pay an additional tax equal to 10% of the difference between the final tax due and the provisional tax paid.
Revised provisional tax calculation
Taxpayers can revise their provisional tax calculation (upwards/downwards) until 31 December 2022. It is noted that for downward revisions, Forms TD.5 (for individuals) and TD.6 (for companies) should be submitted.
*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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