03/08/2022
Companies and certain individuals are deemed to be provisional taxpayers. Allow us to break down the key information around the concept of provisional tax through possible questions that you could ask yourself such as:
1. What is Provisional Tax?
2. Who is a Provisional Tax?
3. When should Provisional Tax be paid? and
4. What happens if an incorrect amount is paid or the payment is late or the Provisional Tax submission is late?
As the word provisional suggests, this tax is a provision of the normal tax liability one may incur at tax year-end. To curb the tax liability from being exorbitant, SARS introduced a method of paying the income tax liability in advance, to ensure that taxpayers do not have a large debt on assessmen...