Who is liable for provisional tax

Provisional tax payments are due if you have a March balance date and use the standard, estimation or ratio options. FEB All Income tax dates. Provisional taxpayers often earn: self-employed income rental income income earned as a contractor income from a partnership overseas income. These can be due to: incorrect use of tax code or rate for PAYE, interest, or dividends lump sum payments that did not have tax deducted, or not enough tax deducted employee share scheme income that did not have tax deducted property sales subject to the bright-line property rule.

Pages in this section. Roles Companies Partnerships Self-employed. Other Sites Business. Moving between Inland Revenue sites. Continue to old site. Payments can be made at banks, via eFiling and via electronic funds transfer EFT. For more information visit SARS' website: www. Individuals and Trusts. Overview Individuals and Trusts Companies. The first provisional tax period ends 31 August The second provisional tax period coincides with the end of the year of assessment, i.

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It is important to note that receiving exempt income, as follows, does not make you a provisional taxpayer:. Note: Companies automatically fall into the provisional tax system. There is no longer a registration or deregistration process to be a provisional taxpayer. The onus is on the taxpayer to determine if he or she is liable for provisional tax, and to request and submit an IRP6 return via eFiling.

What steps must I take to work out the amounts due? The amount of provisional tax payable is worked out on the estimated taxable income for that particular year of assessment, as follows:.

Frequently Asked Questions. The purpose of provisional tax is to allow a taxpayer Read More. No, in terms of Paragraph 28, provisional tax payments are With reference to the definition of a provisional taxpayer in An individual is not a provisional taxpayer if that individual The due dates for provisional tax payments are: First period