Paying prepayment tax as an entrepreneur
As an entrepreneur, you pay your taxes in advance as prepayment tax, based on your own estimate of your profit. This guide explains how to make the estimate, when to change it and how to handle the payments smoothly.
You will need
- MyTax (OmaVero) login (online banking codes)
- The income statement or cash book from your accounts
- An estimate of the year's sales and expenses
- Last year's tax decision
Steps
Understand where prepayment tax comes from
A sole trader's prepayment tax is based on an estimate of the business's taxable profit. A limited company pays corporate income tax on its own profit in advance instalments, and withholding is made separately from the shareholder's salary.
Calculate a profit estimate
Apply for prepayment tax in MyTax
Pay the instalments on their due dates
Check the situation every quarter
Pay additional prepayment if needed
Set the money aside in a separate account
Check your tax decision
The full guide with every step is for members. Try 7 days for €0.99.
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