31 August 2026 is the first provisional tax payment deadline for the 2027 tax year. This deadline is particularly important for individuals who earn income in addition to their salary.
Why might an individual be a provisional taxpayer?
Most employees who earn only a salary, with PAYE deducted by their employer, are not provisional taxpayers. However, an individual may qualify as a provisional taxpayer if they receive income that is not subject to PAYE.
Common examples include:
- Rental income from property;
- Freelance or consulting income;
- Income from a sole proprietorship or other business activity;
- Investment income; and
- Remuneration from an employer that is not registered for PAYE.
SARS generally requires individuals earning non-remuneration income to pay tax in advance through the provisional tax system.
There are specific exclusions. For example, an individual who does not carry on a business may not be required to pay provisional tax where their taxable income does not exceed the applicable tax threshold, or where qualifying non-remuneration income does not exceed R30,000 for the year.
What is due in August?
The first provisional tax payment is based on an estimate of your taxable income for the 2027 tax year. The payment is intended to spread your income tax liability throughout the year rather than leaving a large amount payable when your annual tax return is assessed.
31 August 2026: First provisional tax payment
28 February 2027: Second provisional tax payment
30 September 2027: Voluntary top-up payment, where applicable
Companies with a February year-end are also required to make their first provisional tax payment in August. Companies automatically fall within the provisional tax system.
If you earn income outside your salary, now is the time to check whether you qualify as a provisional taxpayer and whether your August payment has been correctly calculated.
Contact us for a free consultation if you are unsure.