When is provisional tax due in South Africa?

The first payment is due by 31 August and the second by the last day of February. An optional third top-up payment is usually made about six months after the tax year ends.

What is the penalty for paying provisional tax late?

SARS levies a 10% late-payment penalty on the amount due, plus interest until the payment is received.

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Provisional tax deadlines and penalties

Two dates run the provisional tax year, and both of them are unforgiving. Here is what falls due when, and what it costs when it does not.

The dates

The individual tax year runs 1 March to the last day of February.

31 August — first provisional payment (IRP6/1) for the current tax year.
Last day of February — second provisional payment (IRP6/2).
End of September (roughly six months after year end) — voluntary third payment to limit interest.
Filing season for the ITR12 return normally opens in July, with a later deadline for provisional taxpayers.

Late payment

A payment received after the due date attracts a 10% penalty on the amount, plus interest. If the due date falls on a weekend or public holiday, the payment must reach SARS on the last business day before it — not after.

Underestimation

At the second period SARS compares your estimate to your final assessed taxable income. Where taxable income is R1 million or less, an estimate of at least 90% of actual taxable income (or 100% of the latest assessed taxable income) avoids the penalty. Above R1 million, the estimate must be at least 80% of actual. The penalty is 20% of the difference between the tax on the safe-harbour amount and the tax on what you actually paid.

Practical rhythm for contractors

Reconcile monthly rather than twice a year. If you know your rand income to date and your expected remaining invoices, your estimate is never a guess, and the August and February payments become transfers rather than emergencies.

Common questions

When is provisional tax due in South Africa?: The first payment is due by 31 August and the second by the last day of February. An optional third top-up payment is usually made about six months after the tax year ends.
What is the penalty for paying provisional tax late?: SARS levies a 10% late-payment penalty on the amount due, plus interest until the payment is received.

Sources

SARS — Provisional Tax

Rates, thresholds and penalty rules change each tax year. This guide summarises published SARS guidance for general information and is not professional tax advice.