What happens if you've made an overpayment of provisional tax?

If you've made an overpayment of provisional tax, you'll be glad to know there's a way to get your money back.

Here's what will happen when you make an overpayment of provisional tax

The Practical Tax Loose Leaf Service says that if the sum of the employees' tax and provisional tax which you've paid is more than your total liability for tax for any tax year, the excess amount will be refunded to you.

SARS will also pay interest on the excess at the prescribed rate. The interest will be calculated on the difference from the effective date until the date on which the excess amount is refunded.

Always ask yourself these four questions to ensure you stay on top of your provisional tax year after year:

1. What is my tax threshold for the current tax year and do I fall within the threshold?
2. Have I submitted an estimate of my taxable income for the tax year to SARS?
3. Did I make my provisional tax payments on time i.e. 31 August and 28/29 February?
4. Do I need to make a third provisional tax payment?