Provisioinal Income Tax

Dolby

Dolby

Honorary Master
Joined
Jan 31, 2005
Messages
39,237
Reaction score
6,204
In a nutshell - what is it?

SARS whacked me a large sum in Remembered 2011 and now another whack due before February 2012.

I sent a mail asking them 'again?!' as I feel like I work for SARS ... and then reply was :

"The first was for Personal Income Tax which was due in November, this amount is for the Provisional Tax now due at the end of February"

EDIT : Found this http://www.sars.gov.za/home.asp?pid=4557
 
Last edited:
"Provisional tax allows taxpayers to provide for their final tax liability by paying two amounts in the course of the year of assessment. But the final liability is determined upon assessment.

Provisional tax payments - which are made six months after the beginning of a year of assessment, as well as at the end of it - represent tax on anticipated income. Provisional tax estimates and payments are made on IRP6 forms"

So I'm guessing a salary is excluded - so it's extra income?
Rental, Interest etc?
 
If you earn significant money from interest or other investment income, or if you are a company director/cc member, you need to register for provisional tax.
NB - SARS registered me for provisional tax when I declared some interest income. It was a mistake on their part as I fell below the taxable threshold for this.
 
Thanks.

Ok - the reason then is probably investments.

But it excludes my salary as I'm employed?

I ask because the 'Estimated Taxable Income' seems 2 to 3 times higher than what I'd get usually. How do they work out the figure?
 
You declare all your income on the return, if I remember right. And I think you can deduct tax paid so far. You are also allowed to revise the estimate.
 
don't forget to exclude the exempt portion of the interest before declaring the income on the provisional return.
 
Provisional tax is such a nightmare... I came across this blog when i was searching, it helped me understand a bit more, but i keep getting whacked by SARS. Their site seems useful too for completing returns. https://taxtim.com/blog/?p=13
 
Is there a way to pay minimal tax on your investment income.What's the point of investing if SARS takes such a huge whack from it.
 
DrYes said:
Is there a way to pay minimal tax on your investment income.What's the point of investing if SARS takes such a huge whack from it.
Click to expand...

Investment such as shares, etc?
Afaik it's taxed at 15% on the gains, isn't it? That's not too bad.
 
froot said:
Investment such as shares, etc?
Afaik it's taxed at 15% on the gains, isn't it? That's not too bad.
Click to expand...


yip.

market is volatile so if any small gains that you make are taxed, you do feel it.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X