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Provisional Tax - What You Need To Know

Provisional Tax - What You Need To Know

Author: Kevin Watson
Date: 2014-07-11
With filing season 2014 well under way from 01 July, the next tax deadline to be considered is the due date for submission of your provisional tax returns.

A frequently asked question is, who is a provisional tax payer, and how are provisional taxes calculated? Over the next few articles we will explore who is liable to submit a provisional tax return, and how one goes about determining the amount that has to be paid over. The liability to submit a return, and paying the correct amount, has become critical in view of the introduction of the two tier provisional taxpayer system in recent years, along with penalties for underestimation of provisional taxes in certain instances, and late submission of returns.

There is good news for provisional taxpayers - you do get a little longer to submit your income tax return than other taxpayers. Taxpayers submitting manual tax returns must submit by 26 November 2014.

Taxpayers submitting returns electronically at a SARS office, (provisional and non-provisional) have until 21 November 2014 to submit their returns.

Taxpayers who submit their returns electronically via e-filing, who are not provisional taxpayers, must submit by 21 November 2014, and E-filers who are provisional taxpayers, only have to submit their tax return by 30 January 2015.

To determine if you are liable to submit a provisional tax return, read on next week, or contact Roberts & Chaplin Ballito on 032 586 0387, or Umhlali on 032 947 1010.