Understanding Provisional Tax in South Africa (2025 Tax Year)

Provisional tax can be confusing, but don’t worry! We’ll break it down in simple terms to help you understand what it is, when you need to pay it, and why submitting an income tax return is still necessary.

What is Provisional Tax?

Provisional tax is a system where you pay your tax in advance based on your estimated income for the year. It helps spread out your tax payments instead of paying a lump sum at the end of the tax year.

💡 Think of it as a “pay-as-you-earn” system for people who don’t receive a fixed salary with PAYE deductions.

If you’re a freelancer, business owner, or investor earning income outside of a salary, you likely need to pay provisional tax.

When Do You Pay Provisional Tax?

For the 2025 tax year (1 March 2024 – 28 February 2025), you must submit two mandatory payments and an optional third top-up payment:

📆 1st Provisional Tax Payment:
➡️ Due by 31 August 2024
➡️ Based on half of your estimated taxable income for the year.

📆 2nd Provisional Tax Payment:
➡️ Due by 28 February 2025
➡️ Based on your full estimated taxable income, minus what you paid in the first payment.

📆 3rd (Voluntary) Provisional Tax Payment:
➡️ Due by 30 September 2025
➡️ This is a final top-up if you underpaid during the year.
➡️ Helps you avoid interest and penalties from SARS.

Why Do You Still Need to Submit an Income Tax Return?

Even though you paid provisional tax, you still must file your income tax return during tax season. SARS will compare what you actually earned with what you estimated and determine if:

✅ You overpaid tax – in which case you get a refund 💰
❌ You underpaid tax – then you may owe more and need to top up.

Tax Season for 2025 Income Tax Returns:
📆 Opens 1 July 2025 (Awaiting SARS confirmation)
📆 Closes (for provisional taxpayers) 23 January 2026 (Awaiting SARS confirmation)

A Simple Visual Guide 🖼️

Imagine the tax year as a road trip, where you need to stop at three checkpoints before reaching your final destination:

🛑 Checkpoint 1 (31 Aug 2024) – First estimated payment
🛑 Checkpoint 2 (28 Feb 2025) – Second estimated payment
🛑 Checkpoint 3 (30 Sept 2025) – Optional top-up

📍 Final Destination (Jan 2026) – Submit your income tax return!

Final Tips for Provisional Taxpayers

✔ Estimate accurately – Avoid underpaying, as SARS charges penalties.
✔ Keep track of deadlines – Set reminders for August, February, and September!
✔ Submit your final tax return – Even if you paid provisional tax.