What tax rate do I use to calculate my instalment? Is this different from my Annual Return?
The rate may be different for instalments versus that used for the annual return. Instalment tax rates are based on the employer’s payroll from the prior year. Employers in their first and second year of operation should estimate their annual payroll for the current year and use that amount to determine their instalment tax rate. The tax rate to be used on the annual return is based on the actual remuneration paid by the employer during the year. Since the tax payable on the return may differ from the tax paid on the instalments during the year, a debit or credit balance may arise at year-end.
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- What tax rate do I use to calculate my instalment? Is this different from my Annual Return?
