If you earn income over and above a salary, such as rental income, interest, freelance or consulting work, or income from your own business, you are almost certainly a provisional taxpayer. That means your first provisional tax payment for the 2027 tax year is due by Monday 31 August 2026, and late or inaccurate payment carries penalties that are entirely avoidable.
At PATC we have been preparing tax returns and provisional tax submissions for South Africans for over three decades. Here is what provisional tax is, who has to pay it, and what it costs to get it wrong.
What is provisional tax?
Provisional tax is not a separate or additional tax. It is a method of paying your normal income tax in advance, in instalments, rather than in a single amount after your annual assessment. Because income such as rent or freelance earnings has no PAYE deducted from it, SARS collects the tax on that income during the year instead.
You declare an estimate of your taxable income on an IRP6 return, and you pay the tax on that estimate in two instalments: the first halfway through the tax year, and the second at the end of it.
Who must pay provisional tax?
Broadly, you are a provisional taxpayer if you earn income that does not have PAYE deducted from it. That includes people who:
- Earn rental income from a property
- Earn interest or investment income above the exemption thresholds
- Do freelance, consulting or commission work
- Run their own business or practice
- Earn any other income over and above a salary
Companies are automatically provisional taxpayers, and trusts that earn income generally are too. If you are unsure whether this applies to you, we recommend confirming your status with a professional rather than assuming.
When is the provisional tax deadline?
The 2027 tax year runs from 1 March 2026 to 28 February 2027. The two IRP6 deadlines are:
- First payment: Monday 31 August 2026 (the last working day of August)
- Second payment: end of February 2027
There is also an optional third top-up payment later in the year for taxpayers who want to settle any remaining shortfall before assessment, but the two deadlines above are the compulsory ones. The August payment is the immediate priority.
Getting the estimate right
Your first provisional payment is based on an estimate of your taxable income for the full 2027 tax year, worked out from your actual results so far. The estimate is the heart of the exercise: pitch it too low and SARS can impose an underestimation penalty, pitch it too high and you part with cash you did not need to.
This is where professional preparation matters. Our expert team has completed thousands of provisional tax submissions over more than three decades, stays up to date with the latest changes to the tax rules and SARS requirements, and prepares estimates that are accurate, defensible and tax-efficient. You provide the figures, we do the rest, and you have peace of mind that the deadline is met and the amount is right.
What happens if you underpay or pay late
SARS applies penalties and interest strictly:
- Late payment attracts an immediate 10% penalty on the amount due, plus interest at the prescribed rate.
- Underestimating your income can attract an underestimation penalty of as much as 20% of the shortfall.
A shortfall does not resolve itself; penalties and interest continue to accrue until it is settled. All of it is avoidable with a sound estimate, submitted and paid on time.
What we need from you
If you are a PATC client, please send us the following for the period 1 March to 31 July 2026, as soon as possible:
- Your income figures, including rental, interest, freelance and business income
- Your deductible expenses for the same period
- Details of any new or additional income received this year
- Retirement annuity contributions
- Anything else that has changed since last year
Do not wait to hear from us first: the sooner we receive your information, the sooner your submission is prepared and paid. If we do not receive updated figures, we will have to base your submission on the latest information we hold, which is rarely the most accurate or the most tax-efficient basis.
Frequently asked questions
I earn a salary and some rental income. Am I a provisional taxpayer?
Almost certainly yes. Earning a salary does not exclude you. It is the rental income, which has no PAYE deducted from it, that brings you into the provisional tax system.
What is an IRP6?
The IRP6 is the return on which a provisional taxpayer declares their estimated taxable income for the year. One is submitted with each provisional payment, via SARS eFiling.
Does provisional tax mean I pay more tax?
No. It is the same income tax you would have paid in any event, paid during the year rather than in a single amount on assessment. Paid correctly, it protects you from penalties and interest rather than adding to your bill.
What if I only earn a small amount of interest?
Interest below the exemption threshold (R23,800 if you are under 65, R34,500 if you are 65 or older) does not trigger provisional tax on its own. If your additional income is genuinely small, you may fall outside the system, but we recommend having this confirmed rather than assumed.
What happens if I miss the 31 August deadline?
A 10% late payment penalty applies to the amount due, plus interest, and a poor estimate can attract a further underestimation penalty of up to 20%. If you expect to miss the deadline, contact us immediately; acting before the deadline can materially reduce the cost.
Let PATC handle your provisional tax before the deadline
Send us your figures for the period to 31 July and we will prepare the estimate, complete the IRP6, and submit it accurately and on time.
If you are not yet a PATC client, this is a good time to put your provisional tax in professional hands. We offer a complimentary one-hour discovery call to review your position and explain what the work involves. T’s and C’s apply.
Call 031 702 8112 or email info@patc.co.za before 31 August 2026, and let us get your provisional tax done right.
PATC – Professional Accountants and Tax Consultants. Your Partner in Financial Clarity. www.patc.co.za
