A provisional taxpayer is any person who earns income other than remuneration or an allowance or advance payable by the person’s principal.
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 R20 000 or less for the tax year.
- Individuals age 65 and older if their taxable income for the tax year:
- consists exclusively of remuneration, interest, dividends or rent from the letting of fixed property; and
- is R120 000 or less.
A provisional tax return showing an estimation of total taxable income for the year of assessment is only to be submitted if the Commissioner for SARS so requires.