Sevitz says the deadline for the first provisional tax return is August 30. Taxpayers not only have to submit their return by this deadline, but they also have to make the payment on the same day.
Sevitz, a chartered accountant and registered tax practitioner, says provisional tax is a payment mechanism that is intended to assist businesses and individuals meet their normal tax liabilities. It is based on the estimated taxable income for the year. The first payment is due at the end of next month, the second at the end of February next year and a possible third top-up payment is due in September.
Sevitz says you should know the following about provisional tax:
* Who is a provisional taxpayer? Provisional taxpayers receive income, other than a salary or remuneration from an employer. They run their own businesses, such as freelancers, sole proprietors and independent contractors. Taxpayers who are employed, but receive rental income or interest income from investments, may be obliged to register as a provisional taxpayer if certain conditions are met.