What is provisional tax?
Provisional tax is a method of paying tax due, to ensure the taxpayer does not pay one large amount all in one go. As the tax liability is spread over the relevant year of assessment. It requires the taxpayers to pay at least two amounts in advance, during the year of assessment.

Who is provisional tax for?
Provisional tax – also called an IRP6 – is for anyone who receives income other than a fixed salary. This income could come from freelance work, a small business you run as well as income from a property you rent or interest income from investments. You are a provisional taxpayer even if you ALSO earn a salary.

Non-provisional taxpayers
These individuals earn fixed salaries and normally pay their tax contributions to SARS via Pay As You Earn (PAYE) which is deducted off of their paychecks by their employers every month. Non-provisional taxpayers submit one tax return every year in February called the ITR12.

When do I have to pay provisional tax?
Provisional tax is paid twice a year, manually. Payments are made during the year in August (mid tax season) and February (end of tax season) with an IRP6 completed for each one.

Provisional Tax. How and when do I pay it
Provisional taxpayers also need to fill in an ITR12 tax return once during tax season (July – November), just like regular taxpayers do.

How do I register as a provisional taxpayer?
You can either apply as a provisional taxpayer when you first register for a tax number with SARS, or if your are an existing taxpayer you can make the change on your SARS eFiling profile.

How do I complete the IRP6 form?
You can login to SARS efiling to complete your IRP6 tax return or visit your nearest SARS branch where one of the staff will assist you in completing your form. Alternatively you can use TaxTim and their step-by-step guide will help you complete your provisional tax return quickly and easily.

Tax information provided in partnership with TaxTimImage designed by Freepik.