Purpose of provisional tax?

By Marc Sevitz · Updated

Kayla

Kayla said:
12 May 2015 at 9:37

What is the purpose of provisional tax?
TaxTim Marc

TaxTim Marc said:
12 May 2015 at 15:50

It is for those taxpayers that do not have their PAYE paid to SARS on a monthly basis to be able to pay portions of the taxes owing every 6 months. SARS would prefer to have their money upfront and this also avoids the taxpayer getting into financial difficulty if they have to pay all the taxes in one go.