What is Provisional Tax?
Tax & Compliance
Explained Simply
You are a provisional taxpayer if you earn income other than a salary (e.g., rental income, freelance income, business profits). Payments are due twice a year: the first by the end of August and the second by the end of February. A voluntary third "top-up" payment can be made by September to avoid interest. The amounts are based on estimated taxable income for the year. Under-estimation penalties apply if you underestimate by more than the allowed threshold.
Free Tool
Income Tax Calculator
Calculate your annual income tax obligations based on current SARS tax brackets and rebates.
Related Terms
- Income TaxIncome tax is a direct tax levied by SARS on the taxable income of individuals, companies, and trusts in South Africa, using a progressive rate system for individuals.
- Taxable IncomeTaxable income is the portion of total income on which income tax is calculated, after subtracting all allowable deductions and exemptions as defined by SARS.