What is provisional tax

It's not an extra tax, but a way to spread out your tax payments throughout the year instead of paying a big lump sum later. It's a way of paying your tax in advance to avoid a large debt when you tax is assessed. This helps people who earn income besides a regular salary (called remuneration by SARS) , such as from rent, investments, or the profit from a small business.

Instead of one big bill on assessment of your taxable income for the year, you make two installments based on an estimate of your taxable income for the tax year. Once you're assessed and your final tax amount is calculated, your provisional payments count towards it. You can even make an optional third payment after the end of the tax year and before you have to submit your tax return for the year.

This system makes it easier to manage your taxes and avoid surprises. If you're not sure if you're a provisional taxpayer, check with your accountant or the tax authority or feel free to contact us for assistance. 

Note: This summary is for general information only and correct at date of publishing. Please consult with a tax professional for specific advice.