If you missed the February provisional tax deadline, don't wait. SARS interest accrues daily, so every day you delay adds to what you owe. A provisional tax top-up payment stops that clock and protects your standing with SARS.
Provisional tax isn't a separate tax. It's a way to pay your income tax in instalments through the year instead of facing one bill at year-end. If you earn income that isn't taxed through PAYE, such as freelance income, business profits, or rental or investment income, you're a provisional taxpayer. You declare your estimated income on an IRP6 return, SARS's provisional tax form, with two mandatory submissions: the first due in August, the second in February. Capital Gains Tax forms part of your provisional tax estimate too.
Missing the February IRP6 deadline has automatic consequences. SARS charges a 10% late payment penalty on the outstanding tax, plus daily interest of around 11.75% (subject to change). The longer you wait, the more it costs. Filing and paying now stops the interest clock.
If you submitted your February IRP6 but later realise you underestimated your income, you risk a 20% under-estimation penalty, charged when your estimate falls significantly short of your final assessed figure. SARS allows a correction: a third provisional tax payment, known as the top-up. For taxpayers with a February year-end, this voluntary payment can be made until 30 September. It lets you calculate your exact liability once the tax year closes and pay the shortfall, which removes the under-estimation penalty and stops further interest from accumulating.
For most small business owners and sole proprietors, the top-up is the simplest way to correct your position between February and the annual tax season. Staying current on SARS eFiling also keeps your Tax Clearance Certificate valid, which you need for tenders, offshore transfers, and business financing. Read more about provisional tax requirements at www.sars.gov.za and see how we support clients at thecomplianceclinic.co.za/services.
1. Calculate your actual income: gather bank statements, invoices, and expense records to work out your exact earnings up to the end of February. 2. Submit your IRP6: log into SARS eFiling and file your outstanding provisional tax return. 3. Make a payment: pay what you can now, since even a partial payment reduces the balance that interest accrues on. 4. Plan for the top-up: talk to your accountant about whether a third provisional payment is needed. 5. Request penalty remission if it applies: a registered tax practitioner can apply for a Request for Remission if this is a first offence.
Yes, in some cases. If this is your first offence or an exceptional situation prevented you from filing, a registered tax practitioner can submit a Request for Remission to SARS. You typically need to settle the underlying tax debt first.
The third provisional top-up payment is voluntary. It matters most to individuals or companies whose taxable income exceeds R50,000 (individuals) or R20,000 (companies) for the year and who have a shortfall after their first two provisional payments.
A missed SARS deadline is stressful, but it's fixable. Submit your outstanding IRP6, pay what you can now, and consider a provisional tax top-up by September. Every day you wait adds to what you owe, so dealing with it now is the fastest way to restore your standing with SARS.
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