PROVISIONAL TAXES

Provisional tax is not a separate tax. It is a method of paying tax due, to ensure the taxpayer does not pay large amounts on assessment, as the tax liability is spread over the relevant year of assessment. It requires the taxpayers to pay at least two amounts in advance, during the year of assessment, which are based on estimated taxable income.

Any person who receives income (or to whom income accrues) other than a salary, is a provisional taxpayer.

When should it be paid?

• The first provisional tax payment must be made within six months of the start of the year of assessment for 31 August or six months after the approved financial year end date.
• The second payment must be made no later than the last working day of the year of assessment ending 28/29 February.
• The third payment is voluntary and may be made: within six months of the year of assessment, in any other case.