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Revealed: 10 documents you need to calculate your provisional tax

by , 11 September 2013
Are you ready for your next provisional tax payment at the end of this month? If not, continue reading to make sure you have the ten essential documents that'll help you make the right payment to SARS every time.

Provisional tax is a tax system that makes you estimate and pay your taxes in the form of two payments (one every six months), instead of having to pay one large sum at the end of the tax year.

SARS'll automatically register you for provisional tax if it sees you qualify for it.

'But, be aware! SARS can levy penalties and interest if, at the time of assessment, they determine that during the tax year you were liable for provisional tax,' warns the Practical Tax Loose Leaf Service.

The two types of provisional taxpayers are:

  • Tier one – taxpayers with a taxable income less than R1million; and
  • Tier two – taxpayer's taxable income greater than R1million.

When must you pay 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.

Before you sit down and calculate your provisional tax, collect the following documents:

Calculating your provisional tax? Make sure you have these ten documents

  1. Payslips;
  2. Invoices;
  3. Proof of your business expenses;
  4. Bank account statements (for the last three months at least!);
  5. Investment statements;
  6. Details about your medical aid expenses – consult the SARS tax tables on the SARS website to find out how much you can deduct;
  7. List of retirement annuity (RA) contributions – consult the SARS tax tables on the SARS website to find out how much you can deduct;
  8. List of donations to Section 18(A) charities – again consult the SARS tax tables on the SARS website to find out how much you can deduct;
  9. Logbook documenting private and business travel, any expenses related to fuel, maintenance, licensing and insurance; and
  10. A list of all your capital gains (because your capital gain might actually push you over the R1 million income mark and into tier 2).

According to ACS Accounting Trust, the deadlines for provisional tax are:

  • 31 August 2013 – 1st Provisional tax for Feb year end clients (2014)
  • 30 September 2013 – 3rd Provisional tax for Feb year end clients (2013) – if applicable
  • 31 December 2013 – 1st Provisional tax for June year end clients (2014)
  • 31 December 2013 – 3rd Provisional tax for June year end clients (2013) – if applicable
  • 28 February 2014 – 2nd Provisional tax for Feb year end clients (2014)
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!


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