Calculate your tax as a freelancer or independent contractor. Estimate provisional tax, allowable deductions, and take-home pay.
See your estimated provisional tax payments split across the two payment periods (August and February)
Account for business expenses, home office costs, retirement annuity contributions, and medical aid credits
Calculate your actual monthly take-home pay after tax and business expenses for better cash-flow planning
Enter your income and expenses to calculate your tax
Enter your freelance income and expenses to see your tax breakdown and take-home pay
Key tax requirements for freelancers and independent contractors in South Africa
Provisional Tax Registration
Freelancers earning income not subject to PAYE must register as provisional taxpayers with SARS. This requires filing IRP6 returns and making advance tax payments during the year.
Two Payment Periods
Provisional tax is paid in two compulsory instalments: Period 1 (due 31 August) and Period 2 (due last day of February). Each payment is based on your estimated taxable income for the full year.
Third Top-Up Payment
An optional third payment can be made by 30 September (for February year-ends) to settle any remaining tax and avoid interest charges for underpayment during the year.
Penalties for Underpayment
If your provisional tax estimate is less than 90% of the actual tax assessed, SARS may charge interest at the prescribed rate (currently 10.5% per annum) on the shortfall from the due date.
VAT Considerations
If your taxable supplies exceed R2 300 000,00 in any 12-month period, you must register for VAT. Voluntary registration is available once turnover exceeds R120 000,00. VAT-registered freelancers charge 15% VAT and can claim input VAT on business expenses.
Common questions about freelancer and independent contractor tax in South Africa
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Accounter does not provide accounting, tax, business or legal advice. This calculator has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.