Who is exempt from provisional tax?
The following persons / natural persons are not required to pay provisional tax:
- Any person whose income is derived solely from remuneration.
- Any person who does not carry on a business and whose income does not exceed the tax threshold for the year. The tax thresholds for the 2013/2014 year of assessment are:
- R67 111 for persons under the age of 65
- R104 611 for persons over the age of 65
- R117 111 for persons 75 years and older
- The taxable income of any person derived from interests, dividends, and rental from the letting of fixed property and it will not exceed R20 000.
- The investment income does not exceed the exemption for the year. The exemptions for the 2013/2014 year of assessment are:
- R23 800 for persons under 65
- R34 500 for persons over 65
- Foreign interest and dividends are only exempt up to R3 700 of the total exemption.
- Any person 65 years or older is exempt from the payment of provisional tax if:
- The taxable income for the tax year does not exceed
R120 000 and consists of remuneration, pension, interest, dividends or rental income from the letting of fixed property; and
- He/she do not carry on any business.
- Non-resident ship and aircraft owners that are required to make payment under section 33 of the Act are exempt from paying provisional tax.
- Non-residents who are physically absent from the country for 183 days and are not carrying trade in South Africa.