Provisional Tax 02 Submission - Company

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 second provisional tax submission is required 12 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. Depending on any first provisional tax payment made, a payment for the balance to SARS, up to the estimate, is required.

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.

SARS also provides a basic amount relevant to businesses with less than R1million of taxable income. If your estimate is below this amount then be prepared to justify this.

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 pick your taxable income amount below before checking out. If you are on Turnover Tax we can also assist, please choose that option.