• Individuals & Expatriates

Individuals & Expatriates

  1. HOW DO I KNOW IF I AM A PROVISIONAL TAX PAYER?

    If you:

    • receive remuneration from an employer who is not registered for employees’ tax (“PAYE”);
    • derive any income other than remuneration;
    • receive a travel allowance or an advance;
    • derive income from the carrying on of any business and such income exceeds the tax threshold for the year of assessment (i.e. R 75 750 for the 2018 tax year, in the case of taxpayers 65 years and younger);
    • receive taxable income which is derived from interest, dividends, foreign dividends, rental from the letting of fixed property and any remuneration from an employer who is not registered for PAYE and such taxable income does not exceed R30 000 per annum; or
    • any person who is notified by the Commissioner that he or she is a provisional taxpayer.
  2. HOW DOES THE AMENDED DEFINITION OF ‘PROVISIONAL TAXPAYER’ IMPACT ME?

    With effect from 1 March 2017, a taxpayer that derive “remuneration” that is not subjected to employees’ tax withholding have an obligation to register as a provisional taxpayer. In other words, with effect from 1 March 2017, if an employee is paid “remuneration” by an employer that is not registered with SARS for the purposes of withholding and remitting employees’ tax to SARS on a monthly basis, that employee must register as a provisional taxpayer and submit provisional returns and payment on a six monthly basis.

    In addition, provisional taxpayers are required to make the respective provisional tax payments to SARS with the respective provisional tax returns.

  3. WHAT IS DEFINED AS REMUNERATION?

    The Fourth Schedule to the Income Tax Act, 1962 (“the Act”), defines the term “remuneration” to include salary, leave pay, wages, overtime pay, bonus, gratuity, commission, fee, emolument, pension, including allowances.

  4. WHAT IS THE BASIC AMOUNT?

    The "basic amount" is your latest assessed taxable income and excludes taxable capital gains and lump sums. If the latest assessment is more than 18 months old, the "basic amount" is increased by a pre-determined percentage, currently 8% per unassessed tax year.

  5. WHAT IS THE JUSTIFICATION OF ESTIMATES?

    In terms of paragraph 19(3) of the Fourth Schedule to the Income Tax Act, SARS may call on you to justify your estimate and if, dissatisfied, may increase your estimate.

  6. WHAT ARE PENALTIES?

    SARS has the discretion to impose the following penalties if your return/payment is not submitted to SARS on or before due date.

    • 10% Penalty for late payment of provisional tax
    • interest at the official rate prescribed on the amount due from due date until date of payment.
    • 20 percent underestimation penalty as provided for in paragraph 20 of the Fourth Schedule. In the case of taxpayers with taxable income of less than R1 million, the penalty is levied if the first and second provisional payments is less than 90 percent of the normal income tax payable on assessment. In the case of taxpayers with taxable income of R1 million or more, if the total first and second provisional payments is less than 80 percent of the normal tax payable on assessment.

    BDO will not be held liable for any penalties, including administrative penalties should you fail to furnish us with the required information, or not make your payment by the due date.

  7. WHAT IS THE PAYMENT PROCEDURE?

    SARS is making it easier for you to pay your taxes via internet banking and over the counter at banks. When making payment to SARS over the counter at any First National Bank (FNB) branch or using the internet banking facility of FNB or Absa, you are only required to provide your 19-digit payment reference number and the beneficiary ID both of which appear on your tax form.

    Deposit and Internet banking details for provisional tax:

    Account No: SARS – PROV Payment reference number (PRN)* {PaymentRef}

    For more information visit SARS' website: www.sars.gov.za and select payment rules under the taxes menu or contact your nearest SARS branch.

  8. ARE CHEQUES ALLOWED AS PAYMENT?

    Please note that BDO no longer accept cheques from clients for payment to SARS. If due to extraordinary circumstances you have no alternative but to request us to deliver a cheque payment to SARS, BDO will accept a cheque for delivery to SARS only if the cheque is accompanied by an indemnity form.