Provisional tax is payable by all taxpayers except natural persons if:

• That person does not derive any income from the carrying on of any business, and
• Taxable income of that person for the year of assessment will not exceed the tax threshold, or
• The taxable income of that person for the year of assessment which is derived from interest, foreign dividends and rental will not exceed R30 000, or
• any person that derives any remuneration from an employer that is registered for employees tax.

First provisional payment

The first payment is due six months before the end of the tax year. The payment must be based on the basic amount or a lower estimate approved by SARS.

Second provisional payment

The second payment is due on the last day of the tax year. The payment must be based on an estimate of the taxable income for the year. The following two tier model is in force:

• Taxable income less than R1 million – the estimate must be equal to the lesser of the basic amount or 90% of the actual taxable income
• Taxable income greater than R1 million – the estimate must be equal to at least 80% of the actual taxable income

Third Provisional payment

The third provisional payment is due six months after a taxpayer’s year-end. In the case of a taxpayer with a February year‑end, the “top-up” payment can be made by the end of September of every year.

Basic amount

The basic amount is computed as the taxable income (excluding capital gains and retirement fund lump sum benefits) of the latest preceding year of assessment issued by SARS more than 14 days before submission of the provisional tax return. The taxable income must be increased by 8% per annum if that assessment is more than 18 months old.