1) What is Provisional Tax?
Provisional tax is not a separate kind of tax. It’s Tax that is based off the Income you receive in which no PAYE is deducted.
If you qualify based on the below criteria, you are required to submit Provisional Tax Returns twice or three times a year. In simple terms, this is a way of paying off your Annual Income Tax liabilities in advance.
2) What makes you a Provisional tax payer?
You receive income not taxed via PAYE such as:
- Rental Income from property
- Freelance or consulting Income
- Interest exceeding SARS threshold
- Dividends from foreign investments
- Capital gains from selling
- A second property
- Your primary home (Should the gain exceed R2 million)
- Shares / Profit shares from a company
- Trust distributions
3) What makes you a Non-Provisional Taxpayer?
- You only have one income that is taxed monthly via PAYE
- You are under 65 and your income tax is less than the Annual threshold
- You do not earn interest over the exemption bracket
4) How does it work?
Estimate your total taxable income for the full tax year and submit two Provisional returns as follows:
- 1 March – 31 August (1st Provisional Return)
- 1 March – 28 February (2nd Provisional Return)
5) Voluntary Third/ Pop-Up Payment
Should your income estimates be lower than expected there is an option to make a voluntary third Payment by 30 September. This will have to be after the tax year has been concluded.
NB: Payment is due on the date that Submissions are due. For example: due date is 31 August, therefore payment is due on 31 August
6) How does one estimate their income?
Estimate by taking the last tax return filed and using the basic amount declared, if your income is below R1 Million.
Should your income be above R1 million you will be required to do a complex calculation using cemented figures. For this reason, we recommend getting yourself an accountant.
7) What happens if you underestimate your Income?
SARS will then charge a 20% Penalty between your estimate and actual income. It is important to note that the penalty will incur if:
- Your Actual taxable income declared is over R1 million
- The estimate provided in your second provisional is less than 90% of your actual taxable income declared.
8) What documents are important to keep?
SARS requires taxpayers to keep the following documents for up to 5 years after the Annual Income Tax return submission:
- Monthly income summaries
- Invoices, pay slips, freelance contracts
- Rental statements & property costs
- Investments schedules
- Medical aid & Retirements fund documents
- Additional medical expenses (paid out of pocket) Receipts, statements & Invoices
9) How do you submit a Provisional return?
Via eFiling
10) What if you do not submit a Provisional return?
SARS will issue you with Penalties and interest based on late submission and late payment. If you choose not to submit entirely, SARS may query this and issue you with penalties.
11) What happens to your income tax filing date should you become a provisional taxpayer?
Your due date to file shall move from the current tax year to the following tax year. For example:
Instead of filing in October, you will file in January, as follows:
(Example below for 2025, 2026 & 2027 tax years)
Return Type | Submission Date | Tax Period |
1st Provisional Tax Return | August 2025 | 2026/01 |
2nd Provisional Tax Return | February 2026 | 2026/02 |
Annual Tax Return | January 2026 | 2025 |
1st Provisional Tax Return | August 2026 | 2027/01 |
2nd Provisional Tax Return | February 2027 | 2027/02 |
If you have any questions or require assistance with your accounting or tax matters, please do not hesitate to contact our office on (011) 794-5582 or email info@tlok.co.za
Frequently Asked Questions:
Can I pay Monthly?
No, but you may make voluntary monthly deposits to SARS if needed.
What about once-off capital gains?
Yes-even one capital gain in a year means you must submit.
Can SARS assign me as a provisional?
Yes. If they believe your tax requires it, they may inform you.
Do I need supporting documents now?
Yes, keep records in case SARS requests them later.
Is medical aid included?
Yes. Medical credits reduce your tax liability – factor them in, along with any additional out-of-pocket medical expenses.
I made an error on my return. What do I do now?
SARS does allow corrections to be done to the submitted return, provided that this correction is done prior to the deadline for the return.
Written by: Megan Bruwer & Meisha Ramjathan