An advance levy differs from regular taxes primarily in its timing and purpose. Regular taxes are typically calculated and paid after income or transactions are fully realized and reported, often during an annual tax filing. In contrast, an advance levy is collected before the income is finalized or at the time of specific transactions.

The advance levy serves as a prepayment of taxes, ensuring that governments receive revenue earlier and minimizing the risk of tax evasion. For instance, advance income tax payments are often made quarterly, based on projected earnings, while regular income tax is calculated on annual earnings.

Another distinction lies in the calculation method. Advance levies are often estimated based on prior income, anticipated earnings, or standard rates, whereas regular taxes are precisely calculated on actual income, sales, or assets.

Advance levies are also commonly associated with specific transactions, such as property sales or imports, where the tax amount is deducted at the source. Regular taxes, on the other hand, apply to the overall financial picture of an individual or entity.

Ultimately, advance levies aim to improve government cash flow, while regular taxes finalize the actual liabilities, reconciling any differences between estimates and actual earnings or transactions.