i What this calculator does
Provisional tax spreads your liability across two payments rather than one bill at assessment. If you earn trading profits, rental or freelance income that PAYE does not cover, SARS generally expects you to register.
The first payment is due by 31 August and the second by 28 February, with an optional third top-up. Under-estimating carries a penalty, so the calculator also shows the 80% and 90% thresholds SARS applies.
This calculator is for educational purposes only. Results are estimates and may vary depending on market conditions, spreads, commissions, platform settings, and exchange rates. It should not be considered financial advice.
Frequently asked questions
Do I have to register as a provisional taxpayer if I trade?
Generally yes, if you earn income that PAYE does not cover and it exceeds the thresholds SARS sets. Trading profits treated as revenue fall into that category. Someone whose only income is a salary with PAYE deducted usually does not need to register.
When are the payments due?
The first is due by 31 August, halfway through the tax year, and the second by 28 February at year end. A voluntary third payment is available by the end of September for those who want to top up before interest accrues.
What is the under-estimation penalty?
If your final taxable income exceeds your February estimate by more than the permitted margin, SARS can levy a penalty. The commonly applied thresholds are 90% accuracy for taxable income above R1 million and 80% below it, measured against the basic amount where one exists.
What is the basic amount?
It is your most recent assessed taxable income, escalated if the assessment is older than 18 months. Using the basic amount for the first payment protects you from the under-estimation penalty even if your actual income turns out higher.
Can I include trading losses?
Your estimate should reflect expected taxable income for the year, which nets revenue losses against revenue income. Capital losses only offset capital gains. Estimating conservatively reduces the risk of a penalty but ties up cash.
What happens if I pay too much?
The excess is refunded after assessment, usually with interest. Over-paying is inconvenient rather than penalised, which is why many provisional taxpayers estimate slightly high.
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