Adjustment of provisional refund

If in the past you have successfully applied for a provisional income tax refund or provisional income tax assessment, you would do well from time to time to reassess your (financial cum fiscal) situation and communicate the necessary adjustments to the Tax and Customs Administration.

The current low interest rates may for example have inspired you to refinance your mortgage loan, which would make it important to remember that the reduced monthly outlay in connection with your home loan will inevitably be reflected in your home loan interest deduction.

Or perhaps you are about to be discharged from your maintenance payment obligation vis-à-vis a former spouse, which will cause the relevant tax credit to lapse and affect your provisional tax rebate. Generally speaking any changes in your income (be they upward or downward) may cause you to move up or down to a different tax bracket, thus affecting your provisional rebate (it being the tax bracket which dictates the level of your tax deductions).

The above three scenarios are the most common examples of why tax payers get in touch with the Tax and Customs Administration to have their provisional income tax refund updated.

If any of this rings a bell with you, please don’t forget to arrange for your changed circumstances to be reflected in your monthly tax rebate, or get in touch with us so that we can have the necessary adjustments put in place for you. Forewarned is forearmed, after all!

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