Provisional Tax Submission

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 remain with a large tax debt on assessment. Provisional tax allows the tax liability to be spread over the relevant year of assessment.

It happens twice a year with Provisional Tax 01 and 02. It is not a separate tax, just the payment mechanism.

The first provisional tax submission is required 6 months after the start of the financial year.
It contains the best estimate of the year’s total taxable income as well as the related estimate of the total tax payable for the year. Half of this estimated tax amount is then usually paid over to SARS.
The second payment must be made no later than the last working day of the year of assessment. This will be on 28/29 February.
The third payment is voluntary and may be made within six months of the year of assessment.

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.

The Accounting Village we can assist you to submit Provisional Tax 01, 02, and 03.