A provisional taxpayer can be defined as follows:
- any person (other than a company or a person who is exempt from provisional tax) who derives income, other than remuneration
- any company
- any person who is notified by the Commissioner that he is a provisional taxpayer.
A person who becomes liable for the payment of provisional tax must, within 30 days of becoming liable, apply in writing for registration at the local SARS branch office. Failure to do so will result in interest and penalties on late payments and additional tax for the late rendition of returns.
The following individuals are exempt from the payment of provisional tax:
- Individuals below the age of 65 who do not carry on a business and whose taxable income:
- will not exceed the tax threshold for the tax year; or
- from interest, dividends and rental will be R10 000 or less for the tax year.
- Individuals age 65 and older if their annual taxable income:
- consists exclusively of remuneration, interest, dividends or rent from the lease of fixed property; and
- is R80 000 or less for the tax year.
The IRP 12 Guidelines contains more information on this topic.