Provisional taxpayers: 28 February is your deadline to estimate your total taxable income (including capital gains) for the 2019 tax year, and to make your second provisional payment to SARS.
Don’t get this wrong! The penalties for inaccurate estimates are severe, so give careful thought to ensuring you remain within the required parameters. That’s not always easy, and professional advice and assistance will pay handsome dividends, particularly in any doubt.
How accurate you have to be with your estimates to avoid penalties depends on your taxable income.
The second provisional tax payment for the 2018/2019 tax year is due by 28 February.
- If your taxable income is below R1 million your estimate of taxable income must equal your basic amount (your latest taxable income assessment plus 8%) and also be within 90% of your 2018/2019 taxable income. If your estimate is less than these parameters you must provide reasons to the Commissioner.
- When your taxable income is greater than R1 million, your estimate of taxable income must be within 80% of the actual taxable income for the year.
Note: capital gains must be included in your estimates of taxable income or the basic amount.
Give careful thought to ensuring you remain in these parameters to avoid being levied with severe penalties.
Tuffias Sandberg prides ourself on helping take the headache out of tax returns for both business and private individuals. Visit our website to download the latest tax guide.
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