Quarterly Payments Dates (QPD’s).

Quarterly payments Dates, QPD’s as mostly know by taxpayers, are dates for which tax payers pay their provisional tax. Income tax is paid on quarterly basis.  The tax is paid in advance on 25 March, 25 June, 25 September and 20 December at 10%, 25%, 30% and 35% respectively of estimated annual tax liability.

A QPD not paid on time or understated is subject to interest at the rate of 10%. The Commissioner can however waive or reduce the interest on a QPD which is understated by not more 10% margin of error. If the commissioner is satisfied that a person required to pay provisional tax was, through special circumstances, unable to pay the whole or part of an instalment of provisional tax payable by him.

The provisional tax is not a final tax. After the actual tax payable by a person has been determined, the Commissioner will set off any amount of provisional tax paid against the actual tax payable. Where there is an over payment, the amount is set off against any other tax or amount due and payable to the Commissioner by the taxpayer. If there is no such amount the amount will be refunded to the person.