Article by listed accountant Annja Louca
Are you registered for Provisional tax? Your 1st provisional tax return for 2017 is due end of August 2016.
(see also: Deadlines for 2016 Income Tax Returns)
Asking your tax-practioner
Phoning SARS on 0800 00 7277
On your latest tax assessment, you will see a “Y” next to “registered as provisional tax payer”
If you are a company or closed corporation, you are most definitely registered for provisional tax
Employees earning any other income except salary. I.e. rental income, drawings from a business, business income, consulting income, interest income, dividend income, capital gains etc
Any person that SARS says is registered
All companies and closed corporations
Provisional tax is a separate form of tax. It is like PAYE in the sense that you pay tax on income earned before you actually submit your income tax return. You have to submit two returns during the tax year, the 1st one by the end of August and the second by the end of February i.e. For the 2017 income tax period your 1st provisional tax submission is due end of August 2016. The second is then due at the end of February 2017.
You start by calculating the expected taxable income for the 2017 income tax period. You can use actual amounts over the expected period or you can use the 2016 actual taxable income and adjust it for expected changed in the 2017 income tax period. After you have calculated the taxable income for 2017, you then calculate the tax payable on this income and deduct the PAYE and/or withholding tax already paid. This should then be divided by 2 to give you a 6 month results. This amount needs to be paid by the 31st of August 2016.
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