Provisional Tax

What is provisional tax?

Provisional tax is not a special separate type of tax but simply a mechanism to pay your taxes during the tax year instead of having a large amount due to SARS on assessment when you submit your Income Tax return (ITR12).

Provisional tax is paid by individuals who earn income other than a salary / traditional remuneration paid by an employer. This is because they don't pay tax via PAYE, like salaried employees.

Provisional taxpayers are required to submit two provisional tax returns (IRP6) during the tax year and make the necessary payment to SARS if a payment is due on the return. The first provisional tax return must be submitted within the first 6 months of the year and the second provisional tax return at the end of the year of assessment. There's also an option to make a third provisional (top-up) payment before submitting your income tax return (ITR12) for that tax year.

Therefore, the deadlines for the tax year are:

**If you were auto-assessed, your income tax return due date would be the same as a non-provisional taxpayer.

Am I a provisional taxpayer?

If you ONLY earn a salary / remuneration on which PAYE is deducted, you are a non-provisional taxpayer and don't have to worry about filling provisional tax returns. Non-provisional taxpayers make their contributions to SARS via PAYE deducted off their paycheck and only have to submit an income tax return (ITR12) for each tax year.

Provisional taxpayers are people who earn income other than a salary / remuneration on which no income tax has been deducted/withheld. They will need to declare their total estimated taxable income on their provisional tax returns (IRP6) and pay the applicable tax thereon.

If you earn any of the following income, you may be a provisional taxpayer even if you also earn a salary:

• Rental Income
• Interest and Investment Income
• Freelance/business income
• Other taxable income

The above may classify you as a provisional taxpayer, but there are some exceptions and thresholds which apply:

• If you earn income from freelancing or running your own business and your total taxable income is above the tax threshold, then you will be a provisional taxpayer.
• If you do not earn income from running your own business, but your total taxable income from interest, dividends, and rental income is greater than R30,000 per year, and your total taxable income is greater than the tax threshold, then you will be a provisional taxpayer.

The tax thresholds for the 2026 & 2027 tax years are:

• R95,750 (2026) and R99,000 (2027) if you are under 65; or
• R148,217 (2026) and R153,250 (2027) if you are older than 65 and younger than 75; or
• R165,689 (2026) and R171,300 (2027) if you are 75 and older

Click here to find out if you must register as a provisional taxpayer.

How do I register as a provisional taxpayer?

You can follow the next few steps to register for provisional tax:

1. Login to your eFiling profile.
2. Click on Home on the top menu.
3. Click on User on the left menu and then on Tax Types.
4. Tick the box next to Provisional Tax (IRP6) and your income tax number next to it.
5. Click on Register.

How do I request the IRP6 form on SARS eFiling?

You can follow the next few steps to request the IRP6 return on SARS eFiling:

1. Login to your eFiling profile.
2. Click on Returns on the top menu.
3. Click on Provisional Tax (IRP6) under the Returns Issued on the left menu.
4. Choose the correct tax period** under the Select Period drop-down list and click on Request Return. (If you already created the return for the specific tax period, it will be listed and you only have to click on Open.)
5. Click on IRP6 under Return Type to open the return.
6. Complete the return and click on File Return.

**Important: You are filing a return for the tax year you are currently in, the one that ends in the coming month of February. For example, if filing for period 01 in August of 2026, you will select 2027-01 (the 2027 tax year).

Alternatively, click here to get step-by-step help from TaxTim!

Understanding each section of the IRP6 on eFiling

Particulars of Taxpayer

Will already be completed. Check to ensure that these are still correct.

Period

Ensure that the correct period is checked  for example, first period for the 2027 tax year is due 31 August 2026 and the second period is due 26 February 2027.

Turnover

Total gross income received before exemptions and deductions.

Estimated taxable income

All your income minus the business-related expenses incurred in earning that income. Also subtract any pension fund, retirement annuity fund contributions, donation deductions and any exempt income.

Tax on estimated taxable income

This amount will automatically calculate.

Less: Primary, secondary and tertiary rebates

For individuals only  depending on your age, this amount will already appear on the return.

Less: Medical scheme fees

For individuals only  this is a credit that goes toward providing relief if you or your employer pay for a private medical scheme. For the 2027 tax year this amounts to R376 per month for the first two members each and R254 per month for every member after that. For the 2026 tax year this amount was R364 per month for the first two members and R246 per month for every member thereafter.

Less: Additional medical expenses

For individuals only  if your medical aid costs exceed 4� the above medical credit (3� if you are over 65) then a portion of your costs plus out-of-pocket medical expenses can be claimed here as a credit.

Tax for the full year

Will automatically calculate based on the tax tables.

Tax for this period

This amount will automatically calculate and will be divided in two for the first period.

Less: Employees tax for this period

Add up all the employee tax you paid from all your pay slips. Only add the PAYE on your salary  don't include PAYE on Lump Sums, UIF or SDL.

Less: Foreign tax credits for this period

If you earned money from overseas and any tax was withheld or paid, include that amount here.

Less: Provisional tax paid for 1st period

You will need to enter the amount that you have paid for the first provisional tax return. Only applicable for the second provisional tax return.

Tax payable for this period

This amount will automatically calculate.

Add: Penalty / Interest outstanding from 1st period

You will need to enter the penalty and interest amounts if these were raised on your first provisional tax return. Only applicable to the second provisional tax return.

Amount payable

This amount will automatically calculate.

Add: Penalty / Interest on late payment

These amounts will automatically calculate.

Total Amount Payable

This amount will automatically calculate.

Unusual/Infrequent amounts

This is the income that you do not normally earn. For example, capital gains and lump sums.

Historical information

This will already be completed, based on your previous year's income.

Payment detail

Provides you with the payment reference number and beneficiary ID.

When do I have to pay it?

• One payment must be made by the end of August (mid tax year)
• A second payment must be made by the end of February (end of tax year)
• *Optional* third payment can be made at the end of September (seven months after the tax year closes) ONLY if the amount paid in previous payments was insufficient.

Why do we have to submit an IRP6?

SARS wants provisional taxpayers to have an even cash flow and avoid paying one large (potentially crippling) chunk of tax in February, so they ask that two (or optionally three) payments are made during the tax year (at the end of August and end of February), with an IRP6 required for each one.

The tax paid from the first and second payments is then taken off any tax owing at the end of tax season, and can be refunded by SARS if too much was paid. This will happen when you submit your ITR12 to SARS for assessment.

Provisional taxpayers also need to submit an ITR12 tax return (just like regular/non-provisional taxpayers), except the due date for this is 19 January the following year (11 months after the tax season closed).

Provisional Tax Penalties

Provisional taxpayers  those who earn income from sources other than, or in addition to a regular salary or traditional payment from an employer  are all too familiar with the process of estimating their taxable income and submitting provisional tax returns. They don't just do this once, but twice a year!

We know it's a bit painful (although TaxTim makes it super easy) but it's very necessary if you don't want to be lumped with penalties from SARS.

Let's take a look at the most common penalties provisional taxpayers face, plus how to avoid them.

1. Late Payment Penalty

Late payments have a penalty of 10% applied to the total tax amount payable and will be levied for either or both payment periods (August and February). SARS will also add on interest at their prescribed rate  currently 10% per annum.

SARS is exceptionally quick to apply these fines  even if you're only a few days late  so be sure to mark these deadlines down in your calendar (or sign up to receive our email reminders), so that you never miss these dates of end August and end February.

It is important to note that if the deadline falls over a weekend or on a public holiday, the payment must be made at the latest on the last working day before the weekend/public holiday.

2. Under-Estimation Penalty

A unique part of paying provisional tax is the need to estimate your annual taxable income. To prevent people from pulling these figures out of the air, or reporting lower numbers, SARS imposes hefty fines if you underestimate.

This penalty could be levied if your actual taxable income calculated in your final tax return (ITR12) is more than the estimated income submitted on your second provisional return (IRP6).

The penalty amount is different for taxpayers whose taxable income is more than R1 million compared to those earning less than R1 million.

Taxable Income of R1 Million or Less

If your taxable income for the year is R1 million or less, you're at risk for an under-estimation penalty if your estimate in your second provisional return is less than 90% of your actual annual taxable income on your ITR12, and is also less than your 'basic' amount. Your 'basic' amount is your taxable income on your most recent assessment.

The penalty amount will be calculated at 20% of the difference between the normal tax payable on your estimate and the lesser of:

• Tax on 90% of your actual taxable income
• Tax on your 'basic' amount

Taxable Income Greater Than R1 million

If your taxable income is more than R1 million, you must make sure that your estimate of taxable income on your second provisional return is no less than 80% of your actual taxable income. SARS doesn't consider the 'basic' amount when a taxpayer's taxable income is more than R1 million.

The penalty will be calculated at 20% of the difference between the normal tax payable for your estimate and tax calculated on 80% of your actual taxable income.

It's worth knowing that in either case, SARS can also lump on 10% interest on the underpaid tax amount, making the penalty even higher. To avoid these pointless underestimation penalties, never simply guess a number for SARS! Try and estimate effectively and, if possible, use your previous year as a base point. SARS can ask you to justify your estimations, so it's a good idea to keep proper records of your calculations and input data.

3. Late Submission Penalty

SARS doesn't take late submissions of tax returns and/or payments lightly! Even one day late is considered late enough to make you pay a penalty. If you file your provisional tax return after the deadline, SARS considers you to have submitted a 'nil' return  or one where your estimate of taxable income is actually equal to zero.

Unless your actual taxable income is, in fact, zero, this will result in a 20% underestimation penalty being imposed. This rule came about for tax years starting 1 March 2015.

4. Late Payment and Under-Estimation Penalty

What would happen if you'd been penalised for a late payment on one of your provisional tax payments, and then your annual assessment shows that you've under-estimated your taxable income too?

Fortunately, SARS won't demand the full amounts of both penalties, but you're still in for an extra charge. In this case, the underestimation penalty will be reduced by the late payment penalty that has already been applied.

Reversal of Provisional Tax Penalties

These rules and penalties may seem harsh, but they exist to discourage taxpayers from deliberately underpaying their tax or postponing paying it.

However, sometimes things do happen that are outside of your control. Maybe your bank experienced downtime on the 28th of February and caused your payment to reach SARS late?!

If you have a valid and genuine reason for paying or submitting late, and you can provide evidence to back up your case to SARS, it's likely that they'll reverse your penalty  or at least part of it.

Provisional Tax FAQ