Provisional Tax

April 10, 2013 By Wynand

UPDATED FOR 2020 TAX YEAR

The following individuals are not required to pay provisional tax:

Any person whose income is derived solely from remuneration.

  • Any person who does carry on a business and whose income does not exceed the tax threshold for the year. The tax thresholds for the 2020 year of assessment are:
  • R79 000   for persons under the age of 65
  • R122 300  for persons over the age of 65 and below 75
  • R136 750  for persons over the age of 75
  • The taxable income of any person derived from interests, dividends or rental from the letting of fixed property and it will not exceed R30 000 for the relevant year.
  • The investment income does not exceed the exemption for the year. The exemptions for the 2020 year of assessment are:
  • R23 800 for persons under 65
  • R34 500 for persons over 65
  • Any person 65 years or older is exempt from the payment of provisional tax if:
  • The taxable income for the tax year does not exceed R122 300 and consists of remuneration, pension, interest, dividends or rental income from the letting of fixed property; and
  • He / she does not carry on any business.

Close corporations, companies, trusts etc are all provisional taxpayers.

 

The following are specifically excluded from the payment of provisional tax:

i) Public Benefit Organisations (PBOs) approved by SARS

ii) Recreational clubs approved by SARS

iii) Any Body-Corporate, share block company or association of persons contemplated in section 10(1) (e)

iv) Any natural person who does not derive income from the carrying on of any business, if in that relevant year of assessment –  Taxable income does not exceed the tax threshold; or  The taxable income from interest, dividends, foreign dividends, rental from letting fixed property and remuneration from an employer that is not registered for employees’ tax does not exceed R30 000

v) Non-resident owners or charterers of ships and aircraft who are required to make payments under section 33

vi) Any small business funding entity

vii) Deceased estates