The Practical Tax Loose Leaf Service defines a provisional taxpayer as:
But in terms of the Income Tax Act, the following persons are exempt from provisional tax.
You'll be exempt from provisional tax if you fall into one of these three categories:
#1: You're a non-resident and own or charter ships or aircrafts.
#2: You're under the age of 65 and don't earn income from running a business and your taxable income won't be more than the tax threshold or your taxable income from interest, dividends or rental income isn't more than R20 000. The tax threshold is currently fixed at R63 556.
#3: You're over the age of 65 years and SARS is satisfied that:
Well there you have it. Knowing whether or not you're exempt from provisional tax will ensure you comply with the Income Tax Act.
PS. We recommend you check out: Provisional Tax 101. It gives you the step-by-step advice you need to estimate, calculate and pay over your provisional tax correctly - yourself!