Every 6 months, when we assist clients with provisional tax, I come across the same problem. Client are totally confused between the various timelines and the structure of provisional tax and how it incorporates with year-end taxes.
In this article and video and would attempt to explain, in layman’s terms, the provisional tax structure.
Firstly, we need to understand who need to complete provisional tax estimates and who not.
The following MUST submit provisional tax returns:
The following DON’T have to submit provisional tax returns:
Now that we understand this, let’s go to the white board and draw some pictures to understand provisional tax.
Watch the video below