Commencement Rules

Commencement Rules

When you start business as a sole trader / partnership there can be a significant period before you make your first tax return. It is important to remember that although you may not have to file a tax return you still must pay preliminary tax.

This is best explained with an example

New Business

You started in business on 1 July 2009 during the tax year 2009.
Payment and Return Filing dates will be as follows:

Preliminary Tax for 2009 due on or before 31 October 2009,
Preliminary Tax for 2010 due on or before 31 October 2010,

Balance of tax due for 2009 must be paid on or before 31 October 2010,
Tax returns for 2009 and 2010 to be submitted on or before 31 October 2011

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