Provisional Tax 01 Submission

What is Provisional Tax?

Provisional Tax is the mechanism by which you pay SARS amounts related to your income tax assessment. It happens twice a year with Provisional Tax 01 and 02. It is not a separate tax, just the payment mechanism.

The first provisional tax submission is required 6 months after the start of the financial year.

It contains the best estimate of the year's total taxable income as well as the related estimate of total tax payable for the year. Half of this estimated tax amount is then usually paid over to SARS.

There may be mitigating factors such as assessed losses that can reduce the amount. Don't forget about the Small Business Corporation (SBC) Tax or Turnover Tax options where applicable.

Creative CFO can help with this process and will :

  • Review your financial records for the first six months of the financial year
    • This should include the cash movements on all bank accounts, as well as any unpaid sales or purchase invoices
  • Determine the appropriate tax rates to apply and work with you to build the best estimate for the total year's income and tax amount
  • Confirm the final figures with you for completion
  • Submit the IRP6 provisional tax return on eFiling return, or provide you with the figures to fill in
  • Submit the first round of supporting documents if using a lower than the 'basic amount'

If SARS would like to do further audits on your business documentation beyond what we supply this will incur an additional charge from our side to assist.

We will need an engagement letter signed prior to any tax work, which will be sent by the practice team after checkout.

Please select the appropriate taxable income amount before you check out. If you are on Turnover Tax we can also assist, please choose that option.