Provisional Tax in South Africa: Who Must Pay and How
If you earn income that is not subject to PAYE (employees' tax) — such as freelance income, rental income, or investment income exceeding R30,000 — you're likely a provisional taxpayer. This means you must estimate and pay your tax in advance, twice a year.
Who Is a Provisional Taxpayer?
You must register as a provisional taxpayer if you: earn any freelance or contract income, receive rental income, earn investment income (interest, dividends, capital gains) exceeding R30,000 per year, or are a sole proprietor or partner in a business. Salaried employees who ONLY earn a salary and interest below R30,000 are exempt.
Payment Deadlines
First payment (IRP6): Due 31 August (6 months into the tax year). Second payment (IRP6): Due 28/29 February (end of tax year). Optional third payment: Due 30 September (for the preceding tax year). Each payment should be roughly half your estimated total tax liability for the year.
Penalties for Late Payment or Underestimation
SARS charges 10% penalty on underpayment if your estimate is less than 80% of actual taxable income (or 90% for taxable income over R1 million). Interest is charged on late payments at the prescribed rate. It's better to slightly overestimate than to underestimate.
How TIT Tax Helps Provisional Taxpayers
Upload your bank statements and our AI calculates your estimated taxable income, identifies deductions, and helps you determine the correct provisional tax amount — reducing the risk of penalties for underestimation.
Disclaimer: This guide is based on the South African Income Tax Act and published SARS Interpretation Notes as at the 2024/2025 tax year. It is provided for informational purposes only and does not constitute professional tax advice. Tax legislation changes periodically — consult a registered tax practitioner for advice on your specific situation.
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