If you work for yourself and you are responsible for setting the charges for the goods or services you provide, you can be categorized as a ‘self-employed person’. Examples of “self-employed” include the following:
Professionals in private practice viz. Doctors, Lawyers, Accountants, Engineers, etc.
Real Estate Agents
Paying Advanced Taxes
A self-employed person must estimate/average the total amount of money he/she will earn at the end of this year and the total amount in tax he/she will be required to pay. From this estimate he/she must pay one-quarter of the estimated taxes by the following dates:
Submitting Tax Returns
After paying the tax in the advanced quarters stated above, the self-employed person must submit an Income Tax Return by the April 30 of the next year, declaring that the tax has been paid as estimated. Any amount remaining/outstanding should be paid at the time of submitting the Return.
Tax is due on income exceeding of $780,000 annually, or $65,000 per month earned in 2021.
If you are earning an income below the annual threshold of $780,000, you are still required to file an Income Tax Return, along with your Income and Expenditure Statement.
If you were both an employee and self-employed during the year preceding the submission year, and the income earned as a self-employed individual is 25% or more of the total income earned for the year, you are required to pay advance taxes.