The first provisional tax payment must be made within six months of the start of the year of assessment. For years of assessment starting March, this will be 31 August, if it is a business day, or the last business day before that date if it falls on a Saturday, Sunday or public holiday.
Provisional Tax Deadline: 31/08/2024
WHAT IS
Provisional Tax
Provisional tax is not a separate tax from income tax. It is a method of paying the income tax liability in advance, to ensure that the taxpayer does not have a large tax debt on assessment. Provisional tax allows the tax liability to be spread over the relevant year of assessment. It requires the taxpayers to pay at least two amounts in advance, during the year of assessment, which are based on estimated taxable income. A third payment is optional after the end of the tax year, but before the issuing of the assessment by SARS. On assessment the provisional payments will be off-set against the liability for normal tax for the applicable year of assessment.
there is
Three Payment Dates
WHO IS A
Provisional Taxpayer
Any person who receives income (or to whom income accrues) other than remuneration, is a provisional taxpayer. Most salary earners are therefore not-provisional taxpayers, if they have no other sources of income.
FAQ
Payment Question
How is the first provisional tax payment calculated?
The amount of provisional tax payable is worked out on the estimated taxable income for that particular year of assessment, as follows:
- Half of the total estimated tax for the full year;
- Less the employees tax for this period (6 months);
- Less any allowable foreign tax credits for this period (6 months).
- Less any applicable rebates or medical tax credits.
How is the second provisional tax payment calculated?
The amount of provisional tax payable is worked out on the estimated taxable income for that particular year of assessment, as follows:
- The total estimated tax for the full year;
- Less the employees tax paid for the full year;
- Less any allowable foreign tax credits for the full year;
- Less any applicable rebates or medical tax credits;
- Less the amount paid for the first provisional period.
How is the third provisional tax payment calculated?
The amount of provisional tax payable is worked out on the estimated taxable income for that particular year of assessment, as follows:
- The total estimated tax for the full year;
- Less the employees tax paid for the full year;
- Less any allowable foreign tax credits for the full year;
- Less any applicable rebates or medical tax credits;
- Less the amount paid for the 1st and 2nd provisional tax periods.
What happens if I dont submit an IRP6 return?
If the provisional taxpayer does not submit the final provisional tax return within four months after the last day of the year of assessment, then the provisional taxpayer is deemed to have submitted an estimate of an amount of nil taxable income.
If the Commissioner is not satisfied with the estimate of taxable income made by the taxpayer, the Commissioner can increase the taxpayer’s estimate.
If the taxpayer does not make any estimate (fails to submit the IRP6s), the Commissioner can estimate the taxable income.
SARS imposes penalites & interest?
Remember that, by submitting the return and payment timeously and accurately, you can ensure a hassle-free, smooth submission.
Insufficient payment and/or underestimation of taxable income may lead to you being charged with penalties and interest.
How do I pay my provisional tax to SARS?
We will link your SARS profile to your bank account and SARS will sent a payment request to your bank account which you will need to authorise by logging into your internet banking.