We wish to remind taxpayers that the first installment of provisional tax for the 2025 tax year, based on estimated net taxable profits, must be paid by 31 July 2025.
Provisional Tax Payment Schedule
Provisional tax is payable in two equal installments, as follows:
- 31 July 2025 – First instalment
- 31 December 2025 – Second instalment
The final tax balance for 2025 should be fully settled by 1 August 2026.
Who is Required to Pay Provisional Tax?
The obligation to pay provisional tax applies to the following:
- Individuals with taxable income other than employment income, pensions, dividends, or interest
- Companies generating taxable profits
Those without taxable income are not required to make provisional tax payments.
Underestimation Penalty – 10% Additional Tax
If the provisional taxable income declared is below 75% of the actual taxable income for the year, a 10% surcharge will be applied on the difference between the final tax due and the amount previously paid through provisional tax.
Revision of Provisional Tax Estimates
Taxpayers may amend their provisional tax calculation (either upward or downward) at any time up to 31 December 2025.
In cases of upward revision, interest will accrue on the additional amount resulting from the difference between the revised and initially declared tax.
Interest and Penalties for Non-Compliance
Failure to meet payment deadlines may result in the following:
- 5% administrative penalty on each late instalment
- Annual interest of 2.25%, calculated monthly, on overdue payments
- 10% additional tax, where the provisional tax declared falls below 75% of the actual liability
Accepted Payment Methods
Provisional tax payments can be made using the following authorized channels:
- Credit/Debit Card, redirected through the JCCSmart portal
- Online banking, using a valid Payment Reference Number (PRN) issued via the Tax Department’s online system
Require Support?
If you need assistance with the preparation, submission, or revision of your 2025 provisional tax, our team is available to provide expert guidance.
Please contact us to schedule a consultation or discuss your tax compliance needs.
