Provisional Tax Explained (IRP6)

Provisional tax is not an extra tax. It is how a self-employed tradie pre-pays normal income tax during the year, because no employer is deducting PAYE. You pay two compulsory instalments on an IRP6 return: half your estimated tax by the end of August, the balance by the end of February. If you earn more than R30,000 a year from your trade, you must file IRP6 returns even when the amount due is nil.‍‌‌‌​‌‌‌‌​​‌‌‌​​​​​‌‌​​​‌‌​‌‌‌‌‍

Who must register

You are a provisional taxpayer if you earn income that is not subject to PAYE. The only escape, per SARS's provisional tax pages, is if you carry on no business at all and your non-PAYE income (interest, rental and the like) stays under R30,000 a year. In practice, every self-employed tradie is in the system. There is no separate registration: you activate provisional tax on your existing eFiling profile under User, then Tax Types.

The three payment periods

• First payment (compulsory): last business day of August. Half of your estimated tax for the full year.
• Second payment (compulsory): last business day of February. The balance, bringing the total to your full estimated liability for the year.
• Third payment (voluntary top-up): last business day of September, seven months after year-end. An optional extra payment that stops interest running on any shortfall from the year just ended.

Source: SARS's provisional tax page and the SARS external guide GEN-PT-01-G01.

How the amounts are worked out

SARS gives you a starting point called the basic amount: your taxable income from the last assessment SARS issued at least 14 days before the IRP6 deadline, stripped of capital gains and retirement lump sums. If that assessment is more than 18 months old, the basic amount is increased by 8%.

You can instead estimate the current year yourself, but your estimate may not be lower than the basic amount unless SARS agrees. The first payment is half the tax on your full-year estimate (after rebates and medical credits, minus any PAYE already deducted). The second payment is the full-year figure minus what you paid in August.

Penalties and interest

• Late payment: a 10% penalty on the unpaid amount (paragraph 27 of the Fourth Schedule).
• Underestimation: a 20% penalty (paragraph 20) if your February estimate comes in too low. For taxable income up to R1 million, you are safe if your estimate was at least 90% of the actual figure, or at least equal to the basic amount. Above R1 million, your estimate must be at least 80% of actual, and the basic amount no longer protects you.
• Interest: SARS charges interest on underpayments at its prescribed rate, 10.25% per year from 1 March 2026. The rate moves with the repo rate, so check the current figure on SARS's interest rate tables.

The voluntary September top-up exists precisely to stop that interest once you know your real numbers.

Filing on eFiling

1. Log in at www.sarsefiling.co.za
2. Under User, then Tax Types, tick Provisional Tax (IRP6)
3. Go to Returns, then Returns Issued, then Provisional Tax (IRP6)
4. Select the period and click Request Return
5. Enter your estimated taxable income and deductions
6. Check the calculated figure, file, and pay via eFiling, EFT or your bank

Worked example: R350,000 expected profit (2026/27)

A tradie estimates R350,000 net profit for the year:

• Tax on the first R245,100 at 18%: R44,118
• Plus 26% of the R104,900 above that: R27,274
• Gross tax: R71,392
• Less primary rebate: R17,820
• Estimated tax for the year: R53,572
• First payment (end August 2026): R26,786
• Second payment (end February 2027): R26,786

If the year goes well and actual profit lands at R420,000, an estimate left at R350,000 is below 90% of actual, and the 20% underestimation penalty can bite. A tradie whose business is growing should estimate generously and treat any overpayment as a refund waiting at assessment.

Common mistakes

• Skipping the nil return. An IRP6 is due even when no tax is payable. Missed returns block your tax compliance status.
• Estimating low to ease cash flow. The 20% penalty plus interest costs far more than it saves.
• Forgetting the August date. It falls mid-season for most trades. Diarise both dates the day you activate IRP6.
• Ignoring the September top-up. If February's estimate fell short, topping up by the end of September stops the interest clock.

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