How provisional tax works
Provisional tax isn't a separate tax — it's a way of paying your income tax in two instalments rather than a single lump sum at year-end. SARS uses your estimated annual taxable income to compute the bill, then asks for half in August and the balance in February.
What income counts?
Trading profit, rental income, freelance fees, interest above the exemption, and any other income not subject to monthly PAYE. If you also earn a salary, the PAYE already withheld is credited against the total — only the shortfall is owed.
Frequently asked questions
Related: PAYE · RA savings