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Provisional tax:

what you need to know

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Stanley Broun

Head of Fiduciary and Tax

If you’re a provisional taxpayer with a February year end – either as an individual, trust or company – you’ll need to make your second provisional tax payment before the end of the month. It’s crucial that you calculate the amount to be paid accurately – here’s what you need to know.

For provisional taxpayers, two provisional tax payments are required during any period of assessment – the first in August and the second in February. This means that by 29 February 2024, you should have made all the necessary provisional payments towards your tax liabilities for the 2024 tax year.

Provisional tax is paid in advance, in anticipation of the taxpayer’s final liability, to reduce this liability and to avoid the payment of additional interest and penalties on assessment. In terms of Paragraph 20 of the Fourth Schedule to the Income Tax Act 1962, a penalty and interest will be levied on the underestimation of income and the resulting underpayment of provisional tax. It’s therefore crucial that an accurate calculation is done in respect of the second provisional tax payment.

When calculating your provisional tax payment, consider the following:

  • Provisional taxpayers with taxable income of up to R1 million must pay estimated provisional tax within 90% of the actual expected taxable income
  • Provisional taxpayers with taxable income exceeding R1 million must pay estimated provisional tax within 80% of the actual expected taxable income.

At Sanlam Private Wealth, we provide enhanced tax compliance and accounting services to high net worth and ultra-high net worth clients – both individuals and trusts. For further information, contact Stanley Broun at

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