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Provisional Tax for minibus operators

Provisional Tax for minibus operators


What is Provisional tax for minibus operators?

Provisional tax for minibus operators is an advance payment of income tax. It is payable quarterly.

How is Provisional tax for minibus operators administered?

Minibus operators whose buses have a seating capacity of 16 passengers including the driver are required to pay K3, 750 every quarter while those with a seating capacity that exceeds 16 persons including the driver are required to pay K5, 000 every quarter.

Upon payment of Provisional tax, MRA issues the minibus operator with a disk, certificate and a receipt. The disk is supposed to be displayed in front of the minibus windscreen.

When is Provisional tax due?

Provisional tax for minibus is due on 25th of the month following the end of a quarter. For instance, Provision tax for the quarter July to September 2019, is supposed to be paid by the 25th of October 2019.

What are the penalties for failure to pay Provisional tax for minibus operators?

Failure to comply with the requirements for Provisional tax for minibus would result in MRA demanding the taxes defaulted plus penalties.

For instance, if a minibus operator was supposed to pay in the quarter K150, 000 but he/she has only paid K100, 000, which is more than 50% of the required amount, he will pay a fine of 25% of the tax due (25% of K150, 000=K37, 500). He/she will pay K150, 000 + K37, 500=K187, 500.

Where the minibus operator had provisionally paid K70, 000 from the required amount of K150, 000 (which is less than 50% of the required amount), he/she will pay a fine of 30% (30% of K150, 000=K45, 000. This means the taxpayer will pay K150, 000 + K45, 000=K195, 000.

Against this background, we would like to urge all minibus operators to comply with the law in order to avoid penalties.

Feedback: tax@mra.mw, 0888986200 or 0888958220

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