Provisional tax is a system that ensures you declare and pay income tax during a tax year and not only when your income tax return is assessed at the end of the tax year.

If there was no provisional tax system, SARS would have to wait long after the tax year ends until the end of the tax return filing season for these taxpayers to declare their income, and then only to pay over the tax owed. For some taxpayers it could be a large amount for which they have not provided.

Content Discussed:

• Who must register for Provisional Tax?
• General Principles
• Definitions
• Payment 1, 2 and Top Up
• Determining the second payment and working with the "basic amount"
• Basic amount: when to adjust with 8%
• Underestimate penalty
• S89 bis interest
• S89 quat interest
• Admin obligations – TAA

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