Reasons for applying for holdover of provisional profits tax

Taxpayers who wish to apply for deferment of part or all of the provisional profits tax must submit an application to the Inland Revenue Department in writing, and no later than:

• 28 days before the designated tax payment date for provisional profits tax; or

• 14 days after the issuance date of the notice for payment of provisional profits tax

The two have been later prevailed.

Taxpayers can apply for the deferment of provisional profits tax payment for the following reasons:

• The assessable profit for the tax year will be less than 90% of the previous tax year

• The assessable profits for the tax year will be less than 90% of the assessment of the provisional profits tax payment

• The taxpayer has ceased business or will cease business before the end of the year of assessment, and the assessable profits of the year of assessment will be less than the assessment of the previous year of assessment or the provisional profits tax itself

• Losses that can be offset carried forward into the tax year are omitted or inaccurate

• It will be beneficial for taxpayers to choose personal assessment for the tax year and reduce the overall tax

• The taxpayer has objected to the previous year’s profits tax

The above information is for reference only. If in doubt, we welcome your tax inquiries