What is personal provisional tax?

People usually think it’s a special separate type of tax, but it is simply a down payment on your annual Income Tax return (ITR12).  It is submitted twice a year, with the first return due at the end of August, six months into the tax year, and the second return is due at the end of the tax year, in February.  There is another 3rd optional payment that can be made before submitting your income tax return for that tax year, which is only needed if the first two payments were insufficient.

Should I pay personal provisional tax?

If you are employed and only earn remuneration on which PAYE is deducted, you are a non-provisional taxpayer and you only need to submit an income tax return (ITR12) for each tax year.  Provisional taxpayers usually earn other income, such as commission, whether they are employed or unemployed, where no income tax has been withheld.  In the following instances you might be a provisional taxpayer if you earn:

  • Rental income
  • Interest and investment income
  • Other business income
  • Other taxable income

If you earn a taxable income exceeding R30 000 from interest, dividends and rental income per year, and your taxable income exceeds the tax threshold, then you are a provisional taxpayer.  (The tax threshold is the maximum earnings per annum where you do not need to pay tax.)

If you are under 65 R95 750
If you are over 65 and under 75 R148 217
If you are 75 and older R165 689


Why is it important?

It allows you to pay your taxes during the year instead of doing one large payment on assessment.  Should you fail to submit the provisional tax return, SARS can do an estimate based on the taxable income of the previous year.  Late submission, late payment and under-estimation of annual taxable income may lead to unnecessary penalties and interest payable.

Why BSC?

We are financial experts who are trained to handle taxes as per the tax laws of South Africa with over 30 years’ experience in the industry.  Our clients are like family and will be treated as such.  We will ensure that you tax submission is a stress-free experience.