FAQ: What is the basic amount?

For companies is the taxable income assessed for the latest preceding year of assessment, less any taxable capital gain included.

For natural person is taxable income assessed for the latest preceding year of assessment,  less –

  • Any taxable capital gain included therein;
  • the taxable portion of any lump sum benefit from a retirement fund or any severance benefit, other than any amount included under paragraph (eA) of the definition of “gross income”; and
  • any amounts (other than severance benefits) contemplated in paragraph (d) of the definition of “gross income”.

The basic amount must be increased by 8% of the basic amount per year if an estimate is made more than 18 months after the end of the latest preceding year of assessment.

An estimate of taxable income may not be less that the basic amount, unless the circumstances of the case justify an estimate which is lower than the basic amount.

Last Updated:

Share this page on:
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email
Share on print
Print