Provisional Tax

[AdelePetzer]

Good Day All

Hope you are well,

We've paid Provisional Tax and im using Sage One Online (Its like Pastel) Im not sure where to allocate my payment to, is it a Current Liability or under the Tab of Income Tax??

Not a Bookkeeper or Accountant but trying my best...lol

[Andromeda]

Hello Adele, debit the liability account with all income tax payments. The actual income tax gets debited to the expense account and credited to the liability account.

[Francois_za]

Hi Adele, Andromeda is correct, you can allocate the payment on the bank account (drop down selection) to select the balance sheet account for SARS: Income taxation (liability account). This payment can be seen as a deposit until the financials are compiled when the actual taxation is accounted for