Paying provisional tax

Provisional tax helps you manage your income tax. You pay it in instalments during the year instead of a lump sum at the end of the year.

You'll have to pay provisional tax if you had to pay more than $5,000 tax at the end of the year from your last return for 2020 onwards.

Provisional tax is payable the following year after your tax return.

It's a good idea to regularly put money aside for payments to avoid penalties and interest, especially during your first year of business.