Provisional Tax 

What is Provisional Tax ?

Provisional tax is not a separate tax from income tax. It is a method of paying income tax in advance so that the taxpayer does not have a large tax liability when calculating it. The purpose of provisional tax is to allow the taxpayer to pay income tax in the tax year in which the income was earned. Provisional tax allows you to spread the tax due over a specific tax year. It obliges the taxpayer to pay at least two amounts in advance during the year, calculated on the basis of an estimate of taxable income. The third payment is optional after the end of the tax year but before the SARS assessment. Once accrued, the interim payments will be deducted from your normal tax liability for that tax year.

Who Pays Provisional Tax ?

Any person who receives income other than remuneration, is a provisional taxpayer. Most workers are therefore not provisional taxpayers unless they have another source of income.
The following examples of income, suggest that you are not a provisional taxpayer: If you earn ONLY a salary / remuneration on which PAYE is deducted, you are a non-provisional taxpayer and you don't have to worry about filling provisional tax returns. 
If you earn any of the following income examples, you may be a provisional taxpayer (even if you also earn a salary): However, there are some exceptions to these above mentioned examples:

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