Whether you’re running a small business or freelancing on your own, provisional tax in South Africa can feel like a maze. Knowing who must register, when payments are due, and the consequences of missing a deadline is essential to keeping your tax affairs in order.
This guide will walk you through:
Provisional tax is essentially an advance on your expected annual tax bill. It allows SARS to collect income tax throughout the year, much like PAYE does for salaried employees, ensuring a steady flow of revenue to the tax authority.
All companies are automatically classified as provisional taxpayers. For individuals, only the following categories fall under the provisional tax system:
Those earning income from an employer not registered under paragraph 15 of the 4th Schedule.
Those earning income that does not qualify as remuneration, allowances, or advances under section 8(1) of the Income Tax Act.
Those who have been formally notified by the Commissioner to register as provisional taxpayers.
Provisional tax is essentially an advance on your expected annual tax bill. It allows SARS to collect income tax throughout the year, much like PAYE does for salaried employees, ensuring a steady flow of revenue to the tax authority.
All companies are automatically classified as provisional taxpayers. For individuals, only the following categories fall under the provisional tax system:
Those earning income from an employer not registered under paragraph 15 of the 4th Schedule.
Those earning income that does not qualify as remuneration, allowances, or advances under section 8(1) of the Income Tax Act.
Those who have been formally notified by the Commissioner to register as provisional taxpayers.
Follow these steps to add provisional tax to your SARS eFiling profile:
Log in to your SARS eFiling account.
Click Home in the top menu.
In the left-hand menu, select User, then click Tax Types.
Tick the box for Provisional Tax (IRP6) next to your income tax number.
Click Register to complete the process.
Register for SARS eFiling: The eFiling platform lets you request an IRP6 return, submit it, and make payments online. You only need to register once to access all your tax types through the client information system.
For existing eFilers: Simply add Provisional Tax to your profile to access and file your IRP6 return online.
SARS issues an IRP6 return with a basic amount of taxable income, which is generally based on your most recent tax assessment. If your last assessment is older than 18 months, SARS increases this basic amount by 8% per year.
Your provisional tax calculation cannot be lower than the basic amount unless you can provide justification for a lower figure. Because of this, no penalties apply for underpaying provisional tax during the first period. However, a 10% penalty applies for late submission or payment if you miss the deadline.
If SARS has issued an IRP6 based on an older assessment, but a more recent assessment of taxable income is available, you may use the latest assessment as your basic amount — provided it was issued more than 14 days before the provisional tax deadline.
The second provisional tax payment is a bit more complex than the first, and it depends on your actual taxable income:
If your actual taxable income is under R1 million, your estimated income for the second period cannot be less than the lower of:
90% of your actual taxable income, or
The basic amount calculated by SARS.
If your estimate falls below this threshold, a 20% penalty is applied to the difference.
If your actual taxable income is over R1 million, you cannot use SARS’s basic amount. Your estimate for the second provisional tax payment must be at least 80% of your actual taxable income.
If your estimate is lower than 80%, a 20% penalty is charged on the shortfall. In addition, a 10% penalty applies for late submission or payment if you miss the deadline.
Start with your total estimated tax for the full year, then subtract the following:
Employees’ tax (PAYE) already paid for the year
Allowable foreign tax credits for the year
Applicable rebates or medical tax credits
Amounts already paid for the first and second provisional tax periods
The result is the balance of tax you need to pay.
|
Payment |
Due Date |
|
First Provisional Tax Payment |
Within six months of the start of the tax year (for example, 31 August for a year beginning in March, or the last business day before that date if it falls on a weekend or public holiday). |
|
Second Provisional Tax Payment |
No later than the last working day of the year of assessment (last business day of February) |
|
Third Provisional Tax Payment |
Voluntary, for companies with a year end of the last day of February and any other person (other than a company), the last business day of September; in any other case, within six months of the end of the year of assessment. |
|
Due Date |
Tax Year 2025 |
|
1st Provisional tax return |
2025/08/29 |
|
2nd Provisional tax return |
2026/02/27 |
|
Top-up payment (Optional) |
2026/09/30 |
|
Income tax return |
2027/01/22 |
