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.
Creative CFO can help with this process and will :
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.