Provisional tax explained
Provisional tax lets people with income that has no PAYE deducted, such as freelance, business or rental income, pay their tax during the year instead of in one lump sum.
Who must pay it
You are a provisional taxpayer if you earn income that is not a salary from an employer, for example from a business or side hustle, freelance work, rental property, or large amounts of interest. Salaried people with no other income do not need to register. There are exemptions: you do not have to pay provisional tax if you have no business income and either your taxable income is below the tax threshold, or your interest, dividends, rental and foreign income add up to R 30 000 or less for the year.
The payment dates
For individuals, whose tax year ends on the last day of February, the payments are:
| Payment | Due by | What it covers |
|---|---|---|
| First | 31 August | Half of your estimated tax for the year, less PAYE and foreign tax credits |
| Second | End of February | The full year’s estimated tax, less the first payment and PAYE |
| Third (optional) | 30 September after the year end | A top-up to avoid interest if you underpaid |
Each payment is made with an IRP6 return on SARS eFiling. If a date falls on a weekend or public holiday, the deadline moves to the last business day before it.
Estimating your income
For the first payment you can base the estimate on your last assessed taxable income. The second estimate must be closer to the real figure. If your taxable income is above R 1 million, the second estimate should be at least 80% of your actual taxable income; below that, it should be at least 90% or not less than your basic amount (usually last year’s assessed income).
Penalties and interest
- Late payments attract a 10% penalty and interest.
- Underestimating the second payment can lead to an underestimation penalty of up to 20% of the shortfall.
- Not submitting an IRP6 at all is treated as a zero estimate.
Setting aside a fixed share of every invoice or rental payment in a separate savings account makes the payments much easier.
Frequently asked questions
I have a salary and a small side income. Do I need to register?
Usually yes, if the side income is from a business or freelance work. The exemption for small amounts only covers interest, dividends, rental and foreign income.
Do I still file an annual tax return?
Yes. Provisional payments are credits against your final tax, which is worked out on your annual return (ITR12).
Can I ask my employer to deduct extra PAYE instead?
You can ask for extra PAYE to be withheld, which helps, but it does not remove the need to submit IRP6 returns if you are a provisional taxpayer.
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Open calculator →Based on the Fourth Schedule to the Income Tax Act and SARS: Provisional tax. Checked 16 October 2026. This guide is general information, not tax advice.