1. What Is Provisional Tax? 2. Who Must Pay Provisional Tax? 3. Payment Deadlines for 2025 4. How to Register

5. How Much to Pay 6. Step-by-Step Filing Guide 7. Penalties and Interest 8. Tips to Avoid Problems

💡 Simple Explanation:

Instead of paying all your tax in one big amount at the end of the year, you pay it in smaller amounts during the year. This makes it easier to manage your money.

💡 Important Note:

If you have a salary job AND freelance work, you still need to pay provisional tax on the freelance income. Your employer only takes out tax for your salary.

⚠️ Pay Two Days Early!

Banks need time to process payments. Pay at least two working days before the deadline to be safe.

Step 1: Get Your Tax Number

If you don’t have a tax number yet:

• Go to SARS eFiling website: www.sarsefiling.co.za
• Click “Register” and complete the form
• You’ll need your ID number and contact details
• Your tax number will be created automatically

Step 2: Log Into eFiling

• Go to www.sarsefiling.co.za
• Log in with your username and password
• You’ll see your eFiling dashboard

Step 3: Register for Provisional Tax

• Click “Home” at the top
• Click “User” on the left menu
• Click “Tax Types”
• Tick the box next to “Provisional Tax (IRP6)”
• Enter your income tax number next to it
• Click “Register”

✅ That’s It!

You’re now registered. SARS will send you an IRP6 form to complete when it’s time to pay.

Step 1: Work Out Your Total Income

Add up all money you expect to earn for the year from:

• Freelance work
• Business sales
• Rental income
• Investment income

Step 2: Subtract Your Business Expenses

You can take away money you spent on business costs:

• Internet and phone costs
• Equipment and tools
• Travel for work
• Office supplies
• Part of your home costs if you work from home

Total Income – Business Expenses = Taxable Income

Step 3: Check the Tax Tables

Use the SARS tax tables to see how much tax you owe. The tables are on the eFiling system.

Thandi is a freelance graphic designer

• Expected income for the year: R300,000
• Business expenses: R50,000
• Taxable income: R300,000 – R50,000 = R250,000
• Tax owed on R250,000: About R43,890 for the year
• First payment (August): R21,945
• Second payment (February): R21,945

⚠️ Important: The “Basic Amount”

SARS will give you a “basic amount” based on your last tax return. Your estimate cannot be less than this amount unless you can prove your income is lower this year.

How to Complete and Submit Your IRP6:

1. Log into SARS eFiling

   Go to www.sarsefiling.co.za and log in

2. Request Your IRP6 Form
   • Click “Returns” at the top
   • Click “Provisional Tax (IRP6)” on the left
   • Choose the correct tax period
   • Click “Request Return”
3. Fill In Your Income Estimate
   • Enter your estimated taxable income
   • The system will calculate the tax for you
   • Check all the amounts carefully
4. Submit the Form

   Click “Submit” when you’re sure everything is correct

5. Make Payment
   • You’ll get a payment reference number
   • Pay through your bank using this reference
   • Or pay directly on eFiling

💡 Pro Tip:

Set aside 25-30% of your income in a separate savings account. This way you’ll always have money ready to pay your tax.

What happens: If you pay even ONE day late, SARS charges:

• 10% penalty on the total tax you owe
• PLUS 11% interest per year (as of May 2025) until you pay

Example:

• Tax owed: R20,000
• 10% penalty: R2,000
• Plus interest every month until paid
• Total cost: R22,000+ (and growing)

What happens: If you estimate your income too low, SARS charges a 20% penalty on the difference.

Rules you must follow:

If your income is UNDER R1 million:

Your second payment estimate must be at least:

• 90% of your actual income for the year, OR
• The “basic amount” SARS gave you
• Whichever is LOWER

If your income is OVER R1 million:

Your second payment estimate must be at least:

• 80% of your actual income for the year
• No exceptions!

Real Example:

Sipho estimated his income at R200,000

His actual income was R255,000

He should have paid at least 90% = R229,500

He only paid R200,000

Penalty: R5,310 extra!

What happens: If you pay too little tax during the year, SARS charges interest on the difference.

• Current rate: 11% per year (from May 2025)
• This rate can change. Check the SARS website for updates.
• Interest starts from 6 months after your tax year ends

💡 Good News:

If you have a genuine reason for being late (like bank problems), SARS might reduce or cancel your penalty. You must explain in writing with proof.

Tip 1: Keep Good Records

• Save ALL invoices and receipts
• Keep records for at least 5 years
• Use a notebook or app to track income and expenses
• Have a separate bank account for your business if possible

Tip 2: Set Money Aside Every Month

• Save 25-30% of your income for tax
• Put it in a separate savings account
• Don’t spend this money!
• When tax time comes, the money is ready

Tip 3: Pay Early

• Don’t wait until the last day
• Banks need time to process payments
• Pay at least 2-3 days before the deadline
• This protects you from bank delays

Tip 4: Estimate Your Income Carefully

• Don’t guess randomly
• Look at your bank statements
• Check last year’s income
• If unsure, estimate HIGHER rather than lower
• SARS will refund if you overpay

Tip 5: Use the Third Payment Option

• If you earn more than expected during the year
• Make a third payment in September
• This reduces your interest charges
• It shows SARS you’re trying to be accurate

Tip 6: Get Professional Help if Needed

• If your income varies a lot, consider a tax practitioner
• They can help you estimate correctly
• This might save you from penalties
• Cost is usually R1,000-R3,000 per year

Tip 7: Update Your Income During the Year

• Check your income in January
• Adjust your second payment estimate if needed
• Better to pay more now than penalties later

Tip 8: Even If You Make No Money, File Anyway

• If your business is running at a loss
• You still need to submit a “nil return”
• This means estimated income of zero
• Don’t ignore SARS or you’ll get penalties

💡 Important:

Keep ALL receipts and proof of these expenses! SARS can ask to see them. Without proof, you cannot claim.

If You Have a Complaint:

1. Try to resolve it with SARS first (call centre or branch)
2. If not resolved, lodge a complaint on eFiling
3. If still not happy, contact the Tax Ombud at 0800 662 837

💡 To Learn More:

Visit the SARS website or call 0800 00 7277 to ask about Turnover Tax. They can help you decide if it’s right for you.