COMPANIES/SELF-EMPLOYED PERSONS

INTEREST ON 2014 TAX INSTALMENTS

REMEMBER THE RULE ON THE 80% INCREASE

Is your 2015 Estimated Chargeable Profit likely to exceed 2014 Chargeable Profit??

 

 THEN - Your Total Quarterly Tax Payments by the 31st December 2015 (4th quarter instalment) should be:

                 (1)  the amount equivalent to your 2014 Tax Liability

                                               PLUS

                 (2)   80% of the estimated increase in Tax Liability for 2015.

 

Example

2014 – Chargeable Profit       $400,000
*2014 – Tax on Chargeable Profit ($400,000 x 25%)   $100,000
2015 – Estimated Chargeable Profit     $600,000
2015 – Estimated Tax on Chargeable Profit ($600,000 x 25%)       $150,000
 (an increase of $50,000)
Tax Payment due by 31st December 2015 is:
     *$100,000 (full equivalent of tax liability on previously year income)
plus $  40,000  [ 80% of $50,000 (Increase on Tax on Chargeable Profit)]
    = $140,000

 Payments not made accordingly will attract interest from January 1st to date of payment.

 

NB:  In addition to the above, any short payment of quarterly instalment is also subject to interest at the rate of 20% per annum from the date the payment was due to the date of payment or April 30, 2016 whichever is earlier.

 

This interest will be shown on your Notice of Assessment for the Year of Income.

 

NOTE: All our Cashiers’ Units close at 11:00 a.m. on December 24 and 31, 2015.