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The next provisional tax deadline is on the 28th of February 2014. If you're a provisional taxpayer, continue reading to find out how to pay provisional tax so you can meet your 2014 tax deadline and avoid hefty penalties and interest.

Failing to comply with the law when paying your provisional tax will cost you up to 10% in penalties, interest and additional tax of 20% on the outstanding amount!

Are you willing to take that risk?

Here's how to pay provisional tax

When it comes to provisional tax, you must make your first compulsory provisional tax payment at the end of August of every tax year.

The deadline for this payment has already passed.

This payment should cover half of your estimated tax liability.

The Practical Tax Loose Leaf Service explains that you must subtract any employees' tax which may have been deducted from your remuneration from this amount. The same also goes for any foreign taxes which you paid and for which you have the right to claim a tax credit.

You must make your second compulsory provisional tax payment by the end of the tax year, the end of February of the following year.

This is the deadline you must meet next year: The 28th of February 2014.

This amount needs to cover the full amount of your estimated tax liability for the tax year.

Again, you must subtract any employees' tax which may have been deducted from your remuneration from September of the previous year until the end of February.

You must also subtract any foreign taxes which you paid and for which you have the right to claim a Section 6quat tax credit.

If you want to make a third voluntary payment, make the payment to SARS and they'll add this to your provisional tax account.

Use the IRP6 form to submit your provisional tax return

You must complete and submit the IRP6 form for your first and second provisional tax payments.

Caution: Make sure you download the correct version of the form. Changes are made to SARS forms all the time and using an incorrect version could result in administrative delays.

Now that you know how to pay your provisional tax, don't miss your 2014 tax deadline.

Author: FSP Business