Terminal tax
It refers to the ultimate tax payment that must make by an individual or entity prior to the conclusion of a tax period. This scenario commonly arises for businesses or self-employed individuals who obligate to pay provisional tax throughout the year, estimated based on their projected income. When the tax year concludes, the individual or entity has to require to calculate their actual income and settle a final tax payment, consider as terminal tax. Typically, the tax payment due by the tax date, which typically falls approximately 7 months after the tax year’s conclusion.
