Voluntary payments on account
Plan and record optional payments toward a year's corporate tax before its return is filed. Verasol deducts them from the tax when you file the return.
UAE corporate tax is due in one amount within 9 months after the end of the tax period, together with the return. No payments on account are required. If your company still wants to pay part of a year's expected tax earlier, Verasol lets you plan and record those payments, and deducts them from the tax when you file the year's return.
To pay the tax of a filed return, you do not need this screen: open the return and use Record Payment (see Record the payment).
Open the screen#
On the corporate tax dashboard, click Payments on account (optional) under Quick Actions.
The screen works on the financial year running today.
- 1 Open the returns takes you to the returns, for the tax of a filed year.
- 2 The Estimated Tax of the year, the amount Per planned payment, the Total Paid and what is Remaining of the planned payments.
- 3 Plan payments on account plans the year's payments (see below). Until you do, the screen says that no payments on account are planned, and that this is optional.
- 4 About payments on account sums up the rules: the tax is due in one amount within 9 months after the end of the tax period, no instalments are required by law, and payments on account are deducted from the tax when the year's return is filed.
Plan the payments#
Click Plan payments on account. Verasol plans four payments, one at the end of each quarter of the tax period, each a quarter of the Estimated Tax. The last one takes the rounding, so the four add up to the estimate exactly.
The Estimated Tax is the tax of the year's return as last calculated. When the year's return has not been calculated, it is the tax of the previous year's return. Calculate the year's return first if you want the plan to follow this year's books. Once the payments are planned, the screen keeps the estimate they were planned with.
Plan payments on account is offered only while the year has no planned payments. The planned payments are listed with the Period each one covers, its Due Date, the Amount Due and the Amount Paid. Until they are paid, the dashboard also lists them under Voluntary payments on account.
Record a payment#
- Click Pay on the planned payment, or Record Payment in the message about the next planned payment.
- Check the Payment Amount.
- Choose the bank account in Paid from bank account. Only AED accounts are offered.
- Enter the Payment Date, which cannot be after today, and the bank's Reference Number.
- Click Record Payment. Verasol posts the payment and tells you the number of its journal entry.
A planned payment is paid once. Its row then shows Paid and the payment date.
What Verasol books#
- A payment made before the year's return is filed is a prepayment: Verasol debits Corporate Tax Paid in Advance and credits the bank account.
- When you file the return, Verasol deducts the payments made by the filing date: it debits Corporate Tax Payable and credits Corporate Tax Paid in Advance, on the filing date.
- A payment recorded after the return is filed settles the filed tax. A part beyond what is still owed stays in Corporate Tax Paid in Advance.
In Crescent IT Solutions' chart of accounts, for example, these are 1220 Corporate Tax Paid in Advance and 2310 Corporate Tax Payable.
Reverse a payment#
If a payment was recorded by mistake, click Reverse on its row and confirm. You can give a reason. Verasol reverses the payment's journal entry, and the planned payment is open again, so you can record it again.
Once the year's return is filed, Verasol has deducted the year's payments from the tax. Only the part of the payments that the filing did not deduct can then be reversed; for the rest, amend or reopen the return first. See Correct a filed return.
See the payments on the return#
When payments of the year have been recorded, the year's return shows them as Less: payments on account in the Tax Liability, before the Net Tax Payable. Once it is filed, the Payments of the tax box shows them as Payments on account deducted, and the Balance due is what is left to pay.