05/11/2024
🔥🔥Know Your QPDs.
Quarterly Payments Dates, commonly known as (QPDs), are due dates on which Provisional Income Tax returns must be submitted.
Provisional Income Tax is a certain type of tax which is applicable to companies, sole traders, trusts, independent contractors, partners, and non-executive directors.
This type of tax, which is calculated in advance and at the start of the year, is based on business Income estimates for the year and is calculated at a rate of 25% on net income (profit).
For instance, a business can estimate that it will generate a net income of $10000 for the year, it will then need to file quarterly provisional tax returns and settle the tax liabilities accordingly.
These returns are filed quarterly, that is, after every 3 months, and the due dates for filing the returns are March 25th, June 25th, September 25th and December 20th.
It is important to note that for each quarter, the provisional tax liability payments are settled as follows:
1st Quarter - 10%
2nd Quarter - 25%
3rd Quarter - 30%
4th Quarter - 35%
At year-end, and the provisional tax liability has been settled, the business's actual profit for the year will be taken into account and determined if the business paid less or more tax than what they are supposed to pay based on their actual profit for the year.
If there was an underpayment, the business will be required to settle the outstanding balance.
If there was an overpayment, the business will be refunded on the excess amount, or it can be carried forward into the next period to settle future tax liabilities.
So having said that, it is important for businesses to have their tax affairs in order, and avoid financial complications that can arise from improper tax management such as interests, penalties, audits or even potential criminal charges in severe instances.
Our experts provide personalised support to simplify tax management and ensure business compliance and growth.
🤝🏽 Get in touch with us and empower your business with our expert tax management solutions.
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