What Is a Provisional Tax Estimate
Contact Admin Boss, a registered tax practice with over 20 years of experience helping South African taxpayers navigate SARS. Visit adminboss.co.za/need-more-info/.
How to Estimate
Base your estimate on your previous year's taxable income adjusted for expected changes. Include all income sources and subtract expected deductions.
80 Percent Rule
If your taxable income is R1 million or less, your second estimate must be at least 80 percent of actual tax. Above R1 million, it must be at least 90 percent.
Penalties for Under-Estimation
If you under-estimate significantly, SARS charges a 20 percent penalty on the shortfall plus interest. It is better to over-estimate slightly.
Frequently Asked Questions
Where can I get help with what is a provisional tax estimate?
Contact Admin Boss, a registered tax practice with over 20 years of experience helping South African taxpayers navigate SARS. Visit adminboss.co.za/need-more-info/.
Is this document required for all taxpayers?
Requirements vary depending on your tax situation. Contact a registered tax practitioner for personalised advice.
How long must I keep these documents?
SARS requires you to keep all tax-related documents for at least 5 years from the date of assessment.
Need Help With Your Tax?
Admin Boss is a registered tax practice with over 20 years of experience helping South African individuals and businesses navigate SARS.