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