Provisional Tax
Quick Answer
What is Provisional Tax?
Provisional tax is paying income tax in advance in two instalments (August and February), with an optional third top-up.
Provisional Tax explained
It applies to companies and anyone earning income without PAYE deducted. The IRP6 return carries each payment, and underestimating at the second period attracts a 20% penalty.
Who it applies to: All companies; sole proprietors, freelancers and landlords.
Cost: Free to file; the payments are your income tax paid early.
Related terms and guides
Official source: SARS (South African Revenue Service)
Always verify this information with official South African government sources. Rules, fees and thresholds change. Check SARS, CIPC, the Department of Employment and Labour or gov.za before you act.
About BizAnswers: BizAnswers is a privately owned South African company – not a government department. Our guides are free to read and show you how to do things yourself through official channels. If you would rather have the paperwork handled for you, we assist individuals and businesses with filing their South African tax returns and staying compliant, which is a paid service, not a free government service. Contact us for help.
Last reviewed: September 2026 by the BizAnswers editorial team. How we write and check our guides.