Provisional Tax, Done On Time

Who has to pay provisional tax?

Generally, anyone who earns income that isn’t taxed through PAYE, for example:

• freelancers, consultants and sole proprietors;
• people earning rental income;
• content creators and people paid by foreign clients or platforms;
• salaried employees with significant side income.

There are exceptions. For example, you are not a provisional taxpayer if you don’t run a business and your only extra income is interest, foreign dividends or rent totalling R30,000 or less for the year.

When are the payments due?

For a tax year ending in February:

• First payment: by 31 August, based on an estimate of your income for the year.
• Second payment: by the last day of February, based on a more accurate estimate.
• Optional third payment: by 30 September after the year ends, to top up and reduce interest.

Your annual tax return is due later, in January of the following year. For the 2026 tax year, that deadline is 22 January 2027.

What are the penalties?

• Late payment: a 10% penalty on the amount paid late, plus interest.
• Underestimation: if your second estimate turns out too low, SARS can charge a penalty of up to 20% of the shortfall. If your taxable income is R1 million or less, your estimate should be at least 90% of your actual taxable income (or not below the basic amount). Above R1 million, it should be at least 80%.

How we help

• Register you as a provisional taxpayer if needed.
• Work out realistic estimates from your actual records.
• Submit your IRP6 returns and remind you before each due date.
• File your annual return and reconcile what you paid against what you owe.

Common questions