salary tax prepaid

You can prepare your set of accounts from 1.10.2006 to 30.9.2007, which is a 12 month period. In this way, your profits tax can be fall due in 2008/2009. You have to first take out a Buiness Registration Certificate with the Inland Revenue Department, then you complete the return as Nil because your first set of accounts will be fall due in the year of assessment 2008/2009 if you choose 31.10.2007 as your first financial year end. You must remember you are a self-employed person, therefore you do not receive salary. You take out business income and in that way you can put business expenses such as travelling, stationery, assets for business use eg PC as your expenses. If you are married, you can have married person allowance and child allowance (provided that you choose Personal Assessment and fulfil certain criteria). Hope you can get well with your business!

If you are self-employed and have no salary income, you are advise to elect personal assessment. Then financial year end will be Mar 31. Under PA, there will be no provisional tax unless you have other sources of income which require to pay provisional tax. PA must apply for each year.

From Oct 2007-31/03/2008

e.g. $30,000
Total annual income 01/10/2007-31/03/2008 $180,000
Less : Single Personal allowance $100,000
Net total assessable income $80,000
1st $35,000 2% $700
2nd $35,000 7% $2,450
$10,000 12% $1,200
Total tax payable due for 2007/2008 $4,350
Add: provision tax payable due for 2008/2009 $4,350
Total tax payable due $8,700