Tax guide

Provisional Tax in South Africa: Who Must Pay and How

If you earn income that is not subject to PAYE (employees' tax) - such as freelance income, rental income, or investment income exceeding R30,000 - you're likely a provisional taxpayer. This means you must estimate and pay your tax in advance, twice a year.

Who Is a Provisional Taxpayer?

You must register as a provisional taxpayer if you: earn any freelance or contract income, receive rental income, earn investment income (interest, dividends, capital gains) exceeding R30,000 per year, or are a sole proprietor or partner in a business. Salaried employees who ONLY earn a salary and interest below R30,000 are exempt.

Payment Deadlines

First payment (IRP6): due 31 August (six months into the tax year). Second payment (IRP6): due on the last day of February — if that day is a weekend or public holiday, pay by the last business day before it. For the 2026/2027 year of assessment, 28 February 2027 is a Sunday, so the second IRP6 is due Friday 26 February 2027. Optional third (top-up) payment: 30 September after year-end. Check the SARS calendar each year.

Penalties for Late Payment or Underestimation

Late payment of provisional tax attracts a separate 10% penalty (Fourth Schedule para 27). Underestimation on the second IRP6 is different: the underestimation penalty is 20% of the tax shortfall under para 20. If actual taxable income is R1 million or less, the penalty can apply when your second estimate is below both 90% of actual taxable income and the basic amount. If actual taxable income is more than R1 million, it can apply when the estimate is below 80% of actual. SARS may remit the penalty if you can show the estimate was serious and carefully calculated. Prefer a careful estimate over a low one.

How Taxzi Helps Provisional Taxpayers

Upload your bank statements and Taxzi builds an estimate of taxable income and flags lines that may qualify as deductions. That worksheet can inform what you put on your IRP6 — you still decide the figure, confirm it against your records, and file or pay on eFiling. Taxzi is estimate assistance, not a guarantee against SARS penalties.

Disclaimer: This is general guidance based on the South African Income Tax Act and published SARS Interpretation Notes as at the 2026/2027 year of assessment (1 March 2026 – 28 February 2027). It is not professional tax advice. Deductibility depends on your facts. Confirm current figures on sars.gov.za before you file.

Find the side income SARS will expect in your bank statements

Upload bank statements. Taxzi flags lines that may qualify under SARS rules. Mixed shops stay out until you say what they were. You confirm every claim. This is guidance — not a filed return.

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