Chapter 8 - Administrative Procedures
Article 70 - Payment of Tax
A Filing Constituent Entity shall pay advance payments of Tax in respect of each full three-month period or part of a three-month period during a Fiscal Year, except where the length of the Fiscal Year is shorter than three months, in which case no advance payments of Tax shall be payable.
For the purposes of determining the periods in respect of which advance payments are due (Advance Payment Period), the Fiscal Year shall comprise consecutive three-month periods starting from the first day of the Fiscal Year. Where the total number of months in a Fiscal Year cannot be divided equally into three-month periods for each Advance Payment Period, the final period shall be shorter than the preceding three-month periods, with the last period covering the remaining period of the Fiscal Year.
Each advance payment shall be payable no later than 60 days after the end of each Advance Payment Period.
For a Fiscal Year, the Filing Constituent Entity shall elect to calculate advance payments using the Prior Year Method or the Current Year Method as described in Paragraph E or F of this Article, provided that the Filing Constituent Entity makes the election in the manner prescribed by the Bureau on the due date of payment of the first advance payment for the Fiscal Year and such an election shall not be revocable by the Filing Constituent Entity for the Fiscal Year.
For the purposes of applying the Prior Year Method, an advance payment shall be an amount determined in accordance with the formula :
((A ÷ B) x C)
whereby:A: A reasonable estimate of the Tax for the prior Fiscal Year for Constituent Entities, Joint Ventures, and Joint Venture Subsidiaries of a Multinational Enterprise located in the Kingdom, as applicable. For the purposes of the Transition Year, the reasonable estimate of the Tax for those Entities is computed as if they had fallen within the scope of the Law in the prior Fiscal Year.
B: The number of days in the prior Fiscal Year.
C: The number of days in the Advance Payment Period for which the relevant advance payment is due.
Under the Current Year Method, each advance payment shall be an amount determined in accordance with the formula :
(A - B)
whereby:A: A reasonable estimate of the Tax that would be due if the period starting from the first day of the Fiscal Year and ending on the last day of the Advance Payment Period, as the case may be, had been a Fiscal Year for the purposes of the Law and these Regulations.
B: The sum of all advance payments already made, if any, for the Fiscal Year.
Notwithstanding Paragraph C of this Article, the first advance payment for a Transition Year at the time of Entry into Force of the Law shall be paid by the Filing Constituent Entity on the due date for the second advance payment for that Year.
A Filing Constituent Entity shall maintain documentation evidencing how each advance payment was computed and shall provide this documentation to the Bureau upon request.
A Filing Constituent Entity shall pay any balance of Tax Due for the Reporting Fiscal Year no later than 15 months after the last day of the Reporting Fiscal Year.
On making a payment, the Filing Constituent Entity shall specify the reference number of the invoice issued by the Bureau which prescribes the amounts due to the Bureau.