Relief for provisional taxpayers

Pretoria - It will no longer be necessary to fill in a provisional tax return if one has no provisional income to declare.

This is the latest change to the provisional tax system which applies from the end of June this year.

Oupa Magashula, commissioner of the South Africa Revenue Service (Sars), said Sars issues more than 1.5 miilion forms twice a year. Many of these are either never returned or sent back marked "nil".

Magashula said that a large number of people who registered for provisional tax are now captured as provisional taxpayers. The commissioner said it is not easy to deregister. For that reason people who have no provisional income to declare will no longer need to submit the forms. Sars will also no longer automatically issue the forms, saving a great deal of time.

People who have something to pay should now request the forms themselves. According to a letter to taxpayers explaining the changes it is also no longer necessary to register as a provisional taxpayer to receive the form. Anyone can request a provisional tax form (IRP6).

Sars has also introduced a new "provisional tax statement" on which taxpayers can see what payments they have made. Sars has made specific arrangements for companies whose financial years end in December, January, June or July.

If Sars has already issued an IRP6 in the old format, the company can use it and it will be processed.

The company could also ignore the old form and request the new one. If no form has been issued, companies or individuals liable for provisional tax can request the new one. They can do so via the electronic submission system, the call centre or by visiting the nearest branch office.

 - Sake24.com