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
The deadline for this payment has already passed.
This payment should cover half of your estimated tax
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 Section 6quat tax
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
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
If you want to make a third voluntary payment, make the payment to SARS and they'll add this to your provisional tax
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
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
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!