WHAT IS PROVISIONAL TAX AND HOW DO I TAKE CARE OF IT?

Provisional tax refers to the paying of tax liabilities in advance. It is not separate from one’s income tax, but is only required from the following individuals or organisations:

  • Any individual who receives an income other than their salary
  • An employee who receives a salary from an employer who is not registered for employees’ tax
  • Any company
  • Any person classified as a provisional tax payer by the Commissioner

By allowing provisional tax payers to pay in advance, the tax payer does not find themselves with a large tax debt at the end of the tax year, or during assessment. With provisional tax, tax liabilities can be spread across the year, and taxpayers can pay in advance (at least two amounts).

All companies in South Africa automatically fall into the category of provisional taxpayers. Amounts due are calculated by taking the estimated taxable income into account for the specific year of assessment.

MMS Cloud Accounting can assist your company to handle your provisional tax payments to ensure total taxation compliance for your business.


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HOW & WHEN SHOULD IT BE PAID?

The amount payable by the provisional taxpayer is determined as follows:
According to SARS regulations, the first provisional tax payment should be made within 6 months of the start of the year of assessment. If you would like to make use of our professional tax services to ensure that you do not miss any of your payment deadlines, you are welcome to get in touch.