WHAT IS PROVISIONAL TAX ALL ABOUT?
What is Provisional Tax all about?
As you may have heard on the radio and television that the deadline for Provisional Tax is 28 February 2017. Provisional tax forms part of your assessed tax. It is a method of paying tax due to SARS on additional income other than your normal salary income, which is subject to withholding tax. It allows a taxpayer to make advanced payments during the year of assessment, which are based on the taxpayer’s estimated taxable income. The final tax liability is calculated upon assessment and provisional payments made are off-set against the liability for normal tax for that year of assessment.
When am I liable to pay provisional tax?
As an individual taxpayer, there are two factors that will exempt you from Provisional Tax, namely:
- Your annual income is less than the tax threshold (for the 2017 tax year the threshold is R75,000); and
- Additional Income earned from interest, foreign dividends and rental income will not exceed R30,000.
Visit our home page at www.taxreturn.co.za/provisional-tax for more details regarding Provisional taxes.
