If you’re a freelancer, small business owner, or earn income outside of a salary, you’ve probably heard the words “Provisional Tax.” But what does it mean? And do you need to pay it?
Don’t worry — we’ll explain everything in simple terms. No tax jargon. Just the facts.
What Is Provisional Tax?
Provisional Tax is not a separate tax. It’s just a way for you to pay your income tax in advance — during the tax year — instead of waiting for one big payment at the end.
This helps you:
- Avoid a big tax bill later
- Stay on SARS’ good side
- Manage your cash flow better
Who Must Pay Provisional Tax?
You must register and pay Provisional Tax if:
- You earn income that’s not taxed at source, like:
- Freelance work
- Rental income
- Side hustles
- Interest or dividends
- Business profits from a sole proprietor or company
- OR your salary comes from more than one employer and is not fully taxed through PAYE
Who doesn’t need to worry?
- If you only earn a salary from your job and PAYE is deducted by your employer, you’re off the hook.
- If your total non-salary income is under R30,000 per year, you may also be exempt.
Quick Test:
If SARS isn’t already taxing the money you’re making, you probably need to pay Provisional Tax.
When Do You Pay Provisional Tax?
You pay twice a year — with an optional third payment:
| Period | When You Pay | What You Do |
|---|---|---|
| 1st Provisional | End of August | Estimate and pay half of your total year’s tax |
| 2nd Provisional | End of February | Update your estimate and pay the rest |
| 3rd (Optional) | End of September | Catch up if you underpaid (no penalties if you pay now) |
These payments are made using an IRP6 form (more on that below).
Click here to download our tax calendar so you never miss a SARS deadline.
How Do You Calculate It?
You estimate how much income you’ll earn during the year, then:
- Subtract your deductions (like business expenses)
- Apply the SARS tax tables
- Divide that tax into two payments
Easy? Not always.
If you guess too low, SARS could charge you penalties and interest.
That’s why most businesses and freelancers ask a tax professional (like us!) to help.
What Is an IRP6?
The IRP6 is a form you fill in to tell SARS:
- How much income you expect
- How much tax you’re paying now
You submit it online via SARS eFiling when you make your payments.
Provisional Tax Checklist
Here’s a simple checklist to help you stay on track:
What Happens If I Don’t Pay?
If you skip or underpay Provisional Tax, SARS could:
- Charge penalties (up to 20% of the unpaid tax)
- Add interest to what you owe
- Flag you for audits
That’s why it’s better to estimate correctly or get help from experts.
Need Help with Provisional Tax?
At Visionary Accounting, we help freelancers, small business owners, and growing companies stay compliant — and stress-free — with their taxes.
We’ll handle your IRP6 forms, estimate your payments, and make sure you avoid penalties.
Whether you’re new to Provisional Tax or need help catching up, we’ve got your back.
Email us: hello@visionaryaccounting.co.za
Let’s take the hassle out of tax — so you can focus on growing your business.
Final Tip
If you’re earning income that’s not already taxed — you probably need to pay Provisional Tax.
Don’t wait for SARS to come knocking.
Let Visionary Accounting help you stay compliant, accurate, and ahead of the curve.
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