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Provisional Tax
What is provisional tax?
Companies automatically fall into the provisional tax system – a system that makes taxpayers provide for their final tax liability by paying at least two amounts in the course of the year of assessment. Final liability, however, is determined upon assessment.
The aim is to help taxpayers meet their liabilities in the form of two payments made from income received during the tax year, instead of in the form of a single, large sum after the end of the tax year. A third payment after the end of the tax year is optional.
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NEW! Changes to the provisional tax process with effect from 28 June 2010 - Letter to taxpayers
By when is your Provisional Tax due? New information coming soon!
- The first provisional tax payment must be made within six months of the year of assessment.
- The second payment must be made no later than the last working day of the year of assessment.
- The third payment is voluntary and may be made:
- within seven months of the year of assessment, where the year of assessment is February, and
- within six months of the year of assessment, for any other year of assessment.
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How does it work? New information coming soon!
NEW! Changes to the provisional tax process with effect from 28 June 2010 - Letter to taxpayers
For more information on how Provisional Tax works can be found in the following documents:
How to calculate Provisional Tax? New information coming soon!
The amount of tax payable is determined on the estimated taxable income. Please see Tax Tables 2010 (10 July 2010) or Statutory Rates and Rebates 2010 (10 July 2009) to assist you.
- The First Period:
- Half of the total tax for the full year;
- Less the employees tax deducted for this period (6 months);
- Less any allowable foreign tax credits for this period (6 months).
- The Second Period:
- The total estimated tax for the full year;
- Less the employees tax paid for the full year;
- Less any allowable foreign tax credits for the full year;
- Less the amount paid for the first period.
- The Third Period (voluntary):
- The total tax payable for the full year;
- Less the employees tax paid for the full year;
- Less any allowable foreign tax credits for the full year;
- Less the amount paid for the 1st and 2nd provisional tax periods.
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Which Forms to use?
Kindly note that SARS has introduced changes with respect to provisional tax for 2011, which affect the way in which provisional taxpayers file their IRP6 returns. With most provisional taxpayers making their submissions electronically, SARS will no longer send out IRP6 returns to provisional taxpayers. You will now be required to request your IRP6 using one of the methods below:
- Register for SARS eFiling. The eFiling facility allows you to request your IRP6 return and make your submission and payments online, and ensures fast turnaround times for assessment and refund payments.
- If you are already an eFiler, simply add Provisional Tax to your profile so that you can access and file your IRP6 return online.
- Call the SARS Contact Centre on 0800 00 SARS (7277) to request an IRP6 return or find out more about the new Provisional Tax process.
- Visit the SARS branch nearest you where our staff will help you to complete and submit your IRP6 electronically.
The third period's forms (as the first and second period are closed now):
Remember by making your submission on time, you can ensure a hassle-free, smooth submission.
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Questions
If any questions:
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