Provisional taxpayers: Don't miss the upcoming third payment deadline
If you're a provisional taxpayer, this article is for you.
We're here to remind you that the deadline for making your third payment is fast approaching and you need to make your payment on time. If you don't, you'll be opening the door to endless SARS audits and penalties.
We know you can't afford to take that risk.
So keep reading to discover when you need to make your third provisional tax payment so you'll meet the deadline and avoid penalties.
Be Aware of These 12 Taxable Fringe Benefits
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Don't be caught napping when it comes to taxable fringe benefits. We will show you when fringe benefits are taxable and when they are not. Ensure that your payroll will stand up to a SARS audit.
Here's when to make your third provisional tax payment
When it comes to provisional tax, your first payment is due by 31 August, or six months after the approved year-end date. Your second payment is due by 28 February of the following year, or on the approved year-end date.
And your third payment (a voluntary top-up payment) is due by 30 September, or six months after the approved year-end date.
We assume you made your first two payments already. So ensure you make your third payment before the end of the month.
Here's what to include in your calculation of provisional tax
The total tax payable for the full year;
Less your employees tax for the full year;
Less any allowable foreign tax credits for the full year; and
Less the amount paid for the first and second provisional tax periods.
Remember, provisional tax
isn't an additional tax
, it's just another way to settle your tax
liability. This ensures SARS gets a regular stream of tax
. And, if you run a company or close corporation, you can't escape provisional tax
. All companies and close corporations are automatically provisional taxpayers.
So ensure you make your third provisional tax
payment by the 30th
of September so you avoid SARS audits and penalties.
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!