If you earn income outside of a regular salary, you are most likely a provisional taxpayer. Your first provisional tax payment for the 2027 tax year is due 31 August 2026.
That is 29 days away.
Many business owners either do not know they qualify as provisional taxpayers, or know but leave the calculation too late. Here is what you need to know.
Are You a Provisional Taxpayer?
Provisional tax is not a separate type of tax. It is simply a way of paying your income tax in instalments during the year, rather than owing a large amount to SARS at assessment.
You are a provisional taxpayer if you earn income that is not subject to PAYE deducted by an employer. This typically includes:
- Business owners and sole proprietors
- Company directors who receive income other than a salary
- Freelancers and consultants billing clients directly
- Individuals who earn rental income
- Employees who also earn additional income outside their employment, such as rental income or freelance work
If your employer deducts PAYE from your salary and that is your only source of income, you are generally not a provisional taxpayer.
What You Need to Submit by 31 August
The first provisional tax return is the IRP6. It is submitted on eFiling.
Your first payment covers 50% of your estimated annual tax liability for the 2027 tax year, which runs from 1 March 2026 to 28 February 2027.
To calculate your estimate, you need to:
The second payment, covering the balance, is due 26 February 2027.
The Risk of Getting Your Estimate Wrong
SARS Penalises Underestimates
SARS penalises provisional taxpayers who underestimate their income.
If your taxable income for the year exceeds R1 million and your estimate is less than 80% of your actual liability, SARS will charge an automatic 20% penalty on the shortfall.
For taxpayers earning under R1 million, your estimate must be at least 90% of your actual taxable income to avoid penalties.
Underestimating your income to reduce your provisional payment is a common mistake. The penalty that follows is almost always more costly than the payment would have been.
What Happens If You Miss 31 August
Missing the Deadline Has Consequences
Missing the 31 August deadline results in penalties and interest charged by SARS on the amount that should have been paid.
If you are not registered as a provisional taxpayer and you should be, SARS can also charge administrative non-compliance penalties.
If you are unsure whether you qualify, it is better to find out now than to discover it at assessment when the penalties have already accumulated.
How to Register If You Are Not Already Registered
If you are not yet registered as a provisional taxpayer, you can do it on eFiling:
Once registered, you can request your IRP6 return under Returns on the top menu, then Provisional Tax under Returns Issued.
The 31 August deadline is firm. If you are a business owner, freelancer, consultant, or earn any income outside of a salary, check your provisional tax status now.
Four weeks is enough time to get this right. It is not enough time to ignore it.
Not Sure How Much to Pay?
Getting your provisional tax estimate right matters. Too low and SARS penalises you. Too high and you are paying more than you need to.
At Accounting Simplified we calculate your provisional tax correctly, submit your IRP6 on time, and make sure you are not caught out at assessment.
Important: This article provides general guidance for South African taxpayers. Every situation is unique. Consult a qualified accounting professional for advice specific to your circumstances.