Who is a provisional taxpayer

Note: Companies automatically fall into the provisional tax system.

For individuals, you are a provisional taxpayer if you earn income other than your regular salary on which PAYE is deducted. This includes income from:

• Business activities

• Investments (beyond specific thresholds)

• Rental properties

• Unregistered employers

Most salary earners without additional income sources are not provisional taxpayers.

For a more detailed definition, you can refer to paragraph 1 of the Fourth Schedule of the Income Tax Act, No. 58 of 1962.

Exceptions:

• Some individuals and entities are exempt from being provisional taxpayers, even if they have non-salary income. These include:

• Approved public benefit organisations and recreational clubs

• Certain exempt tax entities

• Non-resident ship/aircraft owners

• Individuals with income below specific thresholds (see below)

• Small business funding entities

• Deceased estates

• Certain approved associations

Individuals with income below specific thresholds:

If your  total taxable income from interest, dividends and rental income is greater than R 30 000 per year, and your total taxable income is greater  than the tax threshold, then you will be a provisional taxpayer.

The tax thresholds for the 2024 tax year are:

• R 95 750 if you are under 65 ; or

• R 148 217 if you are older than 65 and younger than 75; or

• R 165 689 if you are 75 and older.

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