Prepayment of Income (Profit) Tax

Prepayment of Income (Profit) Tax (PPT / PIT) for Small Taxpayers

Prepayment of Income (profit) tax is 1% of monthly turnover
including of all taxes except VAT.

Below are classified as turnovers:

• -Value of supplying goods or services
• -Variance of selling and purchasing gold, diamond and other precious stone and currency exchange service.
• -Other Service Incomes

Prepayment of income (profit) tax for small taxpayers is the same as PPT under medium or large taxpayers, please read more: PPT under medium or large taxpayers.

Tax Base for PPT = revenues included any taxes/1.1

PPT= tax base for PPT x 1%

Example 1

Assume XYZ is small taxpayer, and XYZ got revenue (grand total amount in invoices) of $1,100 during October 2018.

Required

Calculate Prepayment of Income (profit) tax for small taxpayer.

Answer

Tax base for PPT = $1,100/1.1=$1,000

PPT = $1,000 x 1%=$100