Page 16 - Profmark Tax Guide 2025 Digital

PROVISIONAL TAX

Provisional tax is payable by all taxpayers except natural persons if:
■ That person does not derive any income from the carrying on of any business,
and
■ Taxable income of that person for the year of assessment will not exceed the
tax threshold, or
■ The taxable income of that person for the year of assessment which is derived
from interest, foreign dividends and rental will not exceed R30 000, or
■ any person that derives any remuneration from an employer that is registered
for employees tax�
First provisional payment
The first payment is due six months before the end of the tax year� The payment
must be based on the basic amount or a lower estimate approved by SARS�
Second provisional payment
The second payment is due on the last day of the tax year� The payment must be
based on an estimate of the taxable income for the year� The following two tier
model is in force:
■ Taxable income less than R1 million – the estimate must be equal to the
lesser of the basic amount or 90% of the actual taxable income
■ Taxable income greater than R1 million – the estimate must be equal to at
least 80% of the actual taxable income
Third Provisional payment
The third provisional payment is due six months after a taxpayer’s year-end� In
the case of a taxpayer with a February year-end, the “top-up” payment can be
made by the end of September of every year�
Basic amount
The basic amount is computed as the taxable income (excluding capital
gains and retirement fund lump sum benefits) of the latest preceding year
of assessment issued by SARS more than 14 days before submission of the
provisional tax return� The taxable income must be increased by 8% per annum if
that assessment is more than 18 months old�

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