Advance Tax

Advance Tax for Sole traders, trust, etc

Advance tax is payable in the following manner:

Instalment No. Due Date Amount Due

1

30th April 33⅓% x (A-B)

2

31st August 33⅓% x (A-B)

3

30th November 33⅓% x (A-B)

If advance tax payable is less than $120, it is due on 30th September

 

Where;

A is the individual’s assessed income tax liability for the preceding (previous) tax year after reduction of any foreign tax credit allowed to the individual for that year; and

B is the total allowable withholding tax credits such as provisional tax and PAYE

Any advance tax paid late is subject to 25% late payment penalty.

 

Advance Tax Based on Estimation

The following taxpayers must estimate their income for the current year and pay advance tax (1/3 or 33 1/3%) based on that estimated amount.

(1)New businesses,

(2) Existing businesses with new business income and

(3) Businesses whose previous years’ assessment are not processed by the first installment due date

 

A statement of the estimate must be filed with the CEO of FRCA by the due date for payment of the first advance tax payment for the year. The CEO may also make estimations.

If a person’s advance tax payment is based on estimates and in a tax year the advance tax paid is less than the actual tax payable, 40% penalty will apply on the shortfall.

 

Company Advance Tax from 2016 tax year

Company advance tax is payable in the following manner:

Instalment No. Due Date Amount Due

1

Due on the last day of the 6th month of the company’s financial year ending (YE)

 

33⅓% x (A-B)

2

Due on the last day of the 9th month of the company’s financial year (YE)

 

33⅓% x (A-B)

3

Due on the last day of the company’s financial year (YE)

 

33⅓% x (A-B)

Where;

A is the individual’s assessed income tax liability for the preceding (previous) tax year after reduction of any foreign tax credit allowed to the individual for that year; and

B is the total allowable withholding tax credits such as provisional tax and PAYE

 

Example

Company Y’s income year ends on December 31, 2016

- 2015 assessed tax was – $150,000

- Therefore 2016 total advance tax payable is – $150,000

Advance tax payable for each installment is as follows:

Installment Due date Advance tax payable Calculation
1 30/06/16 $50,000 33⅓% x (150,000 – 0)
2 30/09/16 $50,000 33⅓% x (150,000 – 0)
3 31/12/16 $50,000 33⅓% x (150,000 – 0)
Total   $150,000  

 

Any advance tax paid late is subject to 25% late payment penalty.

 

Advance Tax Based on Estimation

The following taxpayers must estimate their income for the current year and pay advance tax (1/3 or 33 1/3%) based on that estimated amount.

(1)New businesses,

(2) Existing businesses with new business income and

(3) Businesses whose previous years’ assessment are not processed by the first installment due date

 

A statement of the estimate must be filed with the CEO of FRCA by the due date for payment of the first advance tax payment for the year. The CEO may also make estimations.

If a person’s advance tax payment is based on estimates and in a tax year the advance tax paid is less than the actual tax payable, 40% penalty will apply on the shortfall.

 

Due Dates

Tax Year/Year of Assessment

Fiscal Year End

1st ADV Due in

2nd ADV Due in

3rd ADV Due in

2016

Jul-16

Jan-16

Apr-16

Jul-16

2016

Aug-16

Feb-16

May-16

Aug-16

2016

Sep-16

Mar-16

Jun-16

Sep-16

2016

Oct-16

Apr-16

Jul-16

Oct-16

2016

Nov-16

May-16

Aug-16

Nov-16

2016

Dec-16

Jun-16

Sep-16

Dec-16

2016

Jan-17

Jul-16

Oct-16

Jan-17

2016

Feb-17

Aug-16

Nov-16

Feb-17

2016

Mar-17

Sep-16

Dec-16

Mar-17

2016

Apr-17

Oct-16

Jan-17

Apr-17

2016

May-17

Nov-16

Feb-17

May-17

2016

June-17

Dec-16

Mar-17

Jun-17

2017

Jul-17

Jan-17

Apr-17

Jul-17

2017

Aug-17

Feb-17

May-17

Aug-17

2017

Sep-17

Mar-17

Jun-17

Sep-17

2017

Oct-17

Apr-17

Jul-17

Oct-17

2017

Nov-17

May-17

Aug-17

Nov-17

2017

Dec-17

Jun-17

Sep-17

Dec-17

2017

Jan-18

Jul-17

Oct-17

Jan-18

2017

Feb-18

Aug-17

Nov-17

Mar-18

2017

Mar-18

Sep-17

Dec-17

Apr-18

2017

Apr-18

Oct-17

Jan-18

May-18

2017

May-18

Nov-17

Feb-18

Jun-18

2017

Jun-18

Dec-17

Mar-18

Jul-18

 

 

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HEAD OFFICE LOCATION

CONTACT DETAILS

Revenue & Customs Service Complex,
Lot 1 Corner of Queen Elizabeth Drive
& Ratu Sukuna Road,
Nasese,
Suva.
Phone: (+679) 3243000
Fax: (+679) 3315537
Email: info@frcs.org.fj