The Company Tax menu allows you to specify how to forecast for provisional tax payments or instalments. Company Tax settings are part of the overall Cashflow Settings. You should review all the cashflow settings to take the heavy lifting out of preparing a Cashflow & 3-Way Forecast.
Browse to Budgets & Cashflow -> Cashflow Settings -> Company Tax.
Do you make provisional payments for company tax?
Select your preferred calculation method from the drop-down.
Yes, as a percentage of my income
Use this option in Australia if you pay PAYG Instalments using the "instalment rate" option. This will calculate your payment amount as a percentage of your Total Income from the periods you are making the provisional payment for.
Yes, as a percentage of my profit
Use this option in New Zealand if you use the Accounting Income Method (AIM) in calculation of provisional tax. This will calculate your payment amount as a percentage of your Net Profit from the periods you are making the provisional payment for.
I will budget manually
This will not automatically forecast any payments and you'll need to budget for them manually in the Edit Budget screen. Use this option if the percentage of Income or profit options do not work for you. For example in Australia use this option if you pay Instalments using the "instalment amount" option or in New Zealand if you are not using the "accounting income method" (AIM).
What percentage of income/profit?
Enter a percentage rate that will be used to calculate your provisional payment. Depending on your answer above this will be a percentage of income or a percentage of profit rate.
What liability account do you use to record provisional tax payments?
Select the liability account you use to record provisional tax payments. The forecasted payments will reflected on this account.
In which months do you pay provisional tax?
Select the schedule that reflects when you make your payments.
Do you want to record a monthly expense for the provision?
Select your preferred calculation method from the drop-down.
Select No, if you do not wish to record a monthly expense. Calxa will only forecast the provisional payments without recording an expense.
Select Yes, if you would like to record a monthly tax expense budget. Calxa will record a monthly expense that is also accrued to the liability account, with payments on the chosen schedule.
Click the SAVE CHANGES button at the top right after you complete your selections.