ECONOMY

No advance tax payments for 84,191 firms, professionals

no-advance-tax-payments-for-84-191-firms-professionals

About 35% of businesses and independent professionals who have submitted tax returns on their 2019 income have seen a drop in earnings that dispenses them from having to pay advance taxes on 2020 earnings, according to data released on Wednesday by the Independent Authority for Public Revenue (IAPR).

Data show that, as of Wednesday, there are 238,288 businesses and professionals that are eligible for a pre-paid tax deduction, including total exoneration, or 61.8% of the 385,793 who have already submitted tax returns.

Given that the final submission deadline is August 28 and the total number of businesses and independent professionals about 900,000, the number of taxpayers eligible for a deduction is expected to more than double.

According to the IAPR announcement, out of the 385,793 tax returns submitted by Monday, 325,085 are from independent professionals and 60,708 from enterprises.

Out of the 200,759 independent professionals who will pay less advance tax, 13,285 will pay 30% less, 105,503 50% less, 12,994 70% less and 68,977 will pay no advance tax.

Of the 37,529 eligible companies, 5,259 will pay 30% less, 13,313 50% less, 3,743 70% less and 15,214 will pay no advance tax on their 2020 earnings.