Provisio
nal Tax Why is it necessary?
SARS requires cash flow
System to collect certain people’s tax
4th schedule of the Income Tax Act
Who should pay?
Any person deriving income not remuneration or allowance
All companies
People notified by the commissioner
Exemptions
NPs who:
Do not derive income from carrying on a business AND
TI <= R75k OR
TI from interest/div/rental < R30k
When
Two compulsory pmts
Within 1st 6 months of YOA
Before year end
Voluntary 3rd pmt 6 months after YE or 7 months if year ends on 28 Feb
1st Pmt
Est TI
Calculate estimated liability
Deduct rebates
Halve the amount
Deduct EEs tax
Balance paid to SARS
Use the lower of Estimated TI or Basic Amount
Basic Amount
TI in terms of most recent assessment unless it was within 14 days of due date
of current prov pmt
Increase any amt by 8% if old (min 16%)
nal Tax Why is it necessary?
SARS requires cash flow
System to collect certain people’s tax
4th schedule of the Income Tax Act
Who should pay?
Any person deriving income not remuneration or allowance
All companies
People notified by the commissioner
Exemptions
NPs who:
Do not derive income from carrying on a business AND
TI <= R75k OR
TI from interest/div/rental < R30k
When
Two compulsory pmts
Within 1st 6 months of YOA
Before year end
Voluntary 3rd pmt 6 months after YE or 7 months if year ends on 28 Feb
1st Pmt
Est TI
Calculate estimated liability
Deduct rebates
Halve the amount
Deduct EEs tax
Balance paid to SARS
Use the lower of Estimated TI or Basic Amount
Basic Amount
TI in terms of most recent assessment unless it was within 14 days of due date
of current prov pmt
Increase any amt by 8% if old (min 16%)
