Let’s talk about provisional tax

Valuable insights from Business Services.

What is provisional tax?

To assist taxpayers, tax liability is spread across the year of assessment. Taxpayers will make, at least, two advance payments during the year of assessment. The amount which is due by the taxpayer is based on estimated taxable income.

When is provisional tax due?

Does your business have a February Year end? If the answer to this question is yes, then your second payment must be made no later than the last working day of February.

How is provisional tax due calculated?

One of the unique aspects of paying provisional tax is having to project your annual taxable income. If you understate your sales, if you understate your profit, if you understate your taxable income, SARS charges steep fines.

How will we help you?

To avoid costly errors, the person responsible for tax should be proficient in income tax concepts and have experience in completing the returns too. Our team of knowledgeable and experienced accountants and bookkeeping professionals will be your tax champions.

We will get it right:

If your actual taxable income calculated in your final tax return (IT14) is more than the estimated income submitted on your second provisional return (IRP6) SARS would levy a penalty.

Only a 10-percent variance is allowed by SARS where your turnover is less than one million rand.

Only a 20-percent variance is allowed by SARS where your turnover is more than one million rand.

The margin for error is shrinking.

We will get it right on time.

If your return and payment are late; SARS levies a 10-percent penalty.

We will save you money through submitting your taxes on time and ensuring accurate calculation of your tax liability.