Avoid Interest and Penalties! Submit your Provisional Tax Return by 31 August 2017
08 Aug 2017
A provisional taxpayer must, during every period submit an estimate of the total taxable income which will be derived in that year of assessment. Provisional tax payments must be made by natural persons on or before 31 August each year.
In the event that the taxpayer also receives income in the form of a salary, the PAYE deducted during the year of assessment will be taken into account when calculating the tax payable .
Provisional taxpayers are also entitled to a foreign tax credit in respect of foreign taxes paid on income from a non-South African source.
It is important for taxpayers to ensure that they meet the abovementioned payment deadlines to avoid unnecessary tax liabilities in the form of interest and penalties. In this regard, we highlight below the consequences of the late payment of provisional tax.
Late payment of provisional tax
- Interest at the prescribed rate on late payment;
- A penalty of 10% will be levied on any late payment in respect of the first;
The due date for the first provisional tax payment for the 2018 tax year, being 31 August 2017 is around the corner. All provisional taxpayers are urged to submit their tax returns correctly and on time. Should you need assistance with submitting your provisional tax returns, please feel free to contact our offices