South Africa’s provisional tax season starts in August, but it shouldn’t also be the start of a stressful season to those obligated to pay provisional tax. With the right information, advice and expertise, you can navigate the choppy waters of SARS and remain fully tax compliant, while making sure you never waste money on late filing penalties.

Who Should Pay Provisional Tax During Tax Season?

Provisional taxpayers are South Africans who earn income other than a salary or remuneration. If you get income from investment interest, or other income from rental properties or from a trade, you are a provisional taxpayer, even if you earn a full time salary. However, exceptions do also apply.

Regular taxpayers make their tax contributions to the South African Revenue Service via the PAYE that’s deducted off their pay checks. They submit one tax return each year, in February, known as the ITR12 Income Tax Return form. Since provisional tax payers make money from sources other than employment (salary), they are obligated with making payments to SARS manually, and also to describe these payments in the form of an IRP6 tax return.

SARS would like provisional taxpayers to avoid paying one large chunk of tax in February, and subsequently wants two, or optionally three payments to be made throughout the year in August and February. Keep in mind, provisional taxpayers are also required to fill in an ITR12 tax return once during the regular tax season, between July and January.

Are There Exceptions for Provisional Taxpayers?

If you earn income from other sources, some exemptions might apply, which means you aren’t a provisional taxpayer under SARS’ regulations:

• If you are under 65 years, and your taxable income doesn’t exceed the taxable threshold currently set at R75, 750 for the tax year ended February 2018;
• If you are under 65 years, and you only earn taxable income from rental, dividends or interest totalling less than R30, 000 per tax year.

If you are unsure about any aspect of the provisional tax, its provisions and obligations, speak to our team today. Our tax experts at Bullivant Accounting and Tax Services are here to help, and to remove any stress from the tax season. We look forward to helping you keep your tax affairs in order.