Provisional Tax

provisional tax
What is Provisional Tax?

Provisional tax is not separate from income tax, it is a means of paying your income tax liability in advance so that you do not have a large tax amount due on assessment. Provisional tax allows the tax liability to be spread over the relevant year of assessment.

The first of two provisional tax returns must be submitted within the first 6 months of the year (by the end of August) and the second provisional tax return must be submitted at the end of the year of assessment (end of February). A third payment is optional at the end of September, but only if payments made previously were insufficient.

Who is a Provisional Taxpayer?

Any person who receives income other than a salary is a provisional taxpayer. Because of this, most salary earners are not-provisional taxpayers (if they have no other sources of income).

Other sources of income can include:

  • Interest income from investments;
  • Rental income from a property;
  • Other income from a small business you may run in addition to your main source of income.

If you only earn a salary, you are a regular taxpayer and don’t have to worry about filing any provisional tax returns.

For more information about Provisional tax, visit the SARS website.

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