How is the estimated provisional tax for a company determined and when should it be paid?

The amount of provisional tax payable is worked out on the estimated taxable income for that particular year of assessment, as follows:

1. The First Period:

• Half of the total estimated tax for the full year.
• Less the employees’ tax for this period (6 months).
• Less any allowable foreign tax credits for this period (6 months).

2. The Second Period:

• The total estimated tax for the full year.
• Less the employees tax paid for the full year.
• Less any allowable foreign tax credits for the full year.
• Less the amount paid for the first provisional period.

3. The Third Period (voluntary):

• The total tax estimated payable for the full year.
• Less the employees tax paid for the full year.
• Less any allowable foreign tax credits for the full year.
• Less the amount paid for the 1st and 2nd provisional tax periods.

The first provisional tax payment must be made within six months of the start of the year of assessment. The second payment must be made no later than the last working day of the year of assessment.