Provisional Tax Returns
Provisional taxpayers in South Arica need to submit provisional tax returns twice a year during the tax season. Especially if you earn a salary or income which includes dividends or pension, you will need to submit provisional tax returns. This is normally calculated through your taxable income. Therefore, by doing provisional tax returns, you will be able to submit your estimates of what your earnings will be for the year in which the tax is then calculated and split into two payments and two returns. In South Africa, it occurs in the month of August (being the first return that estimates what you will be earning for the year) and in February is the final one. All of this needs to be paid to SARS to avoid penalties.
According to paragraph 1 of the Fourth Schedule of the Income Tax Act, No.58 of 1962, as any:
• natural person who derives income, other than remuneration or an allowance or advance as mentioned in section 8(1) or who derives remuneration from an employer who is not registered for employees’ tax (for example, an embassy is not obligated to register as an employer for employees’ tax purposes)
• company; or
• person who is told by the Commissioner that he or she is a provisional taxpayer.
How can we help you?
So, what is the consequence if you do not pay your Provisional Tax Returns? By not submitting your Provisional Tax Returns on time or not at all or even correctly, you can be faced with penalties and be charged with interest. However, by placing us in charge of your Provisional Tax Returns you can ensure that none of the above will happen to you. Creating a smooth and hassle-free submission.
What is our Provisional Tax Returns Process?
We will be compiling, collecting, and distributing the following documents from you or your company:
• Guide to Income Tax for Trusts
• E-filing Your Provisional Tax Return
• Comprehensive Guide to Dividend Tax
• Exemption from Normal & Abnormal Income
• Who is excluded from Provisional Tax Returns?
• Any Deceased Estates
• Foreign Dividends
• Certain Share Block Companies & Body Corporates.
• Recreational Clubs & Any Approved Public Benefit Organisations
• Remuneration from Unregistered Employer
• Small Business Funding Entities