Reminder for 1st provisional tax instalment for tax year 2022

McMillan 1 Tax 07-2022

We would like to remind you that the payment deadline for the 1st provisional tax instalment for tax year 2022 is the 31st of July 2022.

Obligation for provisional tax payment

The following persons have an obligation to pay provisional tax, based on their expected annual taxable income for tax year 2022:

  • Individuals with taxable income other than salaries, pensions, dividends and interest, and
  • companies with taxable income.

Persons with no taxable income, do not have an obligation to pay provisional tax.

Payment of provisional tax

The provisional tax is calculated by applying the relevant tax rates (depending on whether the taxpayer is an individual or a company) on the expected taxable income for the year, after considering any overseas tax credits. It is payable in two equal instalments, as follows:

Provisional tax instalments Statutory deadline Effective deadline (No interest/penalty)
1st instalment 31 July 2022 31 August 2022
2nd instalment 31 December 2022 31 January 2023

The timely payment of provisional tax can be made through the following electronic platforms:

  • (JCC), by clicking on Tax Department / Self Assessments 

/ Temporary Assessment (Self-Assessment) – (0200), or

  • online banking, using the unique Payment Reference Number (PRN) previously created through the Tax Portal of the Tax Department (TD).

Payments made after the effective deadline can only be made via online banking and will be subject to interest at the current rate of 1,75% per annum (calculated on a completed months basis) plus a 5% penalty on the tax due. An additional penalty of 5% may be imposed by the TD if the tax remains unpaid two months after the statutory deadline (i.e., for the 1st instalment, the penalty will be imposed from 1 October onwards).

Any difference between the actual tax payable and the temporary tax paid for the year 2022 is payable by 1st of August 2023.

10% additional tax in case of underestimation

In case the provisional taxable income declared is less than 75% of the final taxable income for the year, the taxpayer is required to pay an additional tax equal to 10% of the difference between the final tax due and the provisional tax paid.

Revised provisional tax calculation

Taxpayers can revise their provisional tax calculation (upwards/downwards) until 31 December 2022. In case of an upward revision, interest is payable on the difference between the revised amount payable and the amount initially declared and paid. It is noted that for downward revisions, Forms TD.5 (for individuals) and TD.6 (for companies) should be submitted.

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