BDO Tax Alert: 1/2027 Provisional Tax Deadline – 31 August 2026

Provisional taxpayers with a February year-end should take note that the first provisional tax payment for the 2027 year of assessment is due by 31 August 2026. This is a key South African tax compliance deadline and should be managed proactively. Provisional tax is not a separate tax; it is an advance payment mechanism that allows taxpayers to sWho is a provisional taxpayer?
ettle their normal income tax liability during the year of assessment, rather than only on final assessment.

A provisional taxpayer generally includes any company, any individual who earns income other than remuneration subject to employees’ tax, and any person who has been notified by the Commissioner for the South African Revenue Service that they are a provisional taxpayer. Certain exclusions may apply, including where an individual’s taxable income is below the relevant tax threshold or where qualifying passive income does not exceed the prescribed limits.

Legislative framework
The provisional tax regime is governed principally by the Fourth Schedule to the Income Tax Act, No. 58 of 1962. The Fourth Schedule defines provisional taxpayers, prescribes when provisional tax returns and payments are due, and requires taxpayers to estimate taxable income with due care. The IRP6 return is the prescribed return through which provisional taxpayers declare their estimated taxable income and calculate the related provisional tax payable.

What must be done by 31 August 2026?
By 31 August 2026, affected taxpayers must submit their first-period IRP6 return and make the corresponding payment to SARS. The estimate should be prepared using reliable and current financial information, including actual results to date, expected income for the remainder of the year, deductible expenses, taxable capital gains, and any relevant rebates or credits. Where no payment is due, taxpayers should still consider whether a “nil” IRP6 return is required.

Key actions to manage provisional tax compliance

• Confirm your provisional taxpayer status.
• Gather financial information early.
• Prepare a reasonable estimate.
• Submit the IRP6 return timeously.
• Pay before the deadline
• Seek advice where circumstances have changed.

Taxpayers who require assistance or are uncertain about their provisional tax position are invited to contact us for tailored support ahead of the deadline.

Email Nicoline Benzien: NBenzien@bdo.co.za