Updated: Aug 15
As part of the COVID-19 Tax Relief Measures implemented per the Draft Disaster Management Tax Relief Administration Bill, 2020, for both the first and second provisional tax periods, a portion of payments may be deferred without incurring penalties & interest.
For the first period, a qualifying provisional taxpayer may pay 15% of one half of the total estimated liability, instead of the 50% of the total estimated liability for the year of assessment.
For the second period, a qualifying taxpayer may pay 65% of the total estimated liability for the year of assessment, instead of the 80-90%, as required per the Tax Administration Act.
Provisional tax deferred will be due and payable by the qualifying taxpayer with the third provisional payment, subject to interest if not paid by due date.
This welcome tax relief measure alleviates the cash flow burden of compliant taxpayers.
For the year of assessment ending Feb’21, the first provisional tax return & payments are due by 31 August 2020.