Provisional Tax

April 10, 2013 By Wynand

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 2016 year of assessment are:
  • R73 650   for persons under the age of 65
  • R114 800  for persons over the age of 65 and below 75
  • R128 500  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 2015 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 R120 000 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.