Provisional Tax Calculator — South Africa

You must pay provisional tax if you earn income other than a salary — such as rental income, freelance income, business profits, or investment returns above R30,000 per year. Directors of companies and members of close corporations are also provisional taxpayers by default.

The first payment is due six months into your tax year (end of August for individuals), covering at least 50% of your estimated annual liability. The second payment is due at year-end (end of February), bringing total payments to at least 90% of your liability. A voluntary third payment can be made after year-end to avoid interest.

If your taxable income exceeds R1 million and your estimate is more than 20% below the actual liability, SARS imposes a 20% penalty on the shortfall. For income below R1 million, under-estimation penalties apply if the second period estimate is less than the basic amount.

The basic amount is your assessed taxable income from the most recent SARS assessment, increased by 8% for each year since that assessment. If no assessment exists, SARS will estimate based on your registration details. Using the basic amount protects you from underestimation penalties.

Yes. Retirement Annuity (RA) contributions are deductible up to 27.5% of the greater of your remuneration or taxable income, capped at R350,000 per year. Deducting your RA contributions when estimating your provisional tax reduces your liability and the payments you need to make.