Relief for provisional taxpayers

2010-07-07 09:02

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.


  • Edna - 2010-07-07 12:46

    Not sure what I am supposed to do. Accoding to SARS I am registered for Provisional and Individual Tax. I have never had a business in my life and now they claim I owe them R7 000.00 plus. First thety tell me its for Provisional tax and then they tell me it is because of paying too little tax when I got my pension from my previous employer. How could I pay too little tax when SARS gave me a tax directive to submit to Alexander Forbes. I am so confused and no-one has been able to help me, I keep getting the same response, Submit your query and we will investigate. I have attended SARS 4 times already to submit and whenever I follow up they tell me they cannot locate my query. What am I to do?

  • gcr - 2010-07-07 13:03

    This doesn't go far enough - what about the thousands of pensioners who are treated as provisional tax payers. Ones pension is no different to a person receiving a fixed monthly salary so why treat pensioners differently. Also tax is paid over to SARS monthly by your pension fund so there should be no concern from SARS perspective that they are not collecting taxes. Completing the forms twice a year is also nonsensical - you show your pension as income and deflate it by interest rebates allowed plus other rebate but nowhere can you show a reduced income from deductions incurred (medical aid expenses) for example. Oh and if you don't calculate your figures correctly then they institute penalties and interest based on their calculated assessment - and when contested it takes months to resolve SARS need to get their act together - there that's my rant for the day

  • ClassAct - 2010-07-08 08:53

    If you have interest income declared on your tax returns the system automatically registers you as a Provisional Taxpayer. The interest can be as low as R60.00. That's how funny that system is. The worry now is this indication that it is difficult to deregister as a Prov. Taxpayer esp that you cannot touch SARS at their studio to query things.

  • Dave - 2010-07-08 22:02

    This article is not strictly correct. The SARS press release stated that if you have no liability to pay then you do not need to submit. However, it is possible to have taxable income without having to pay anything in prov tax, e.g, where your PAYE has been over deducted. Further, the 4h Schedule ha not been amended. It sill requires persons who qualify as provisional taxpayers to make a declaration, i.e. to submit a return. These announcements smack of legislating via press releases rather than thru due process.

  • Hugh - 2010-07-16 18:09

    There is no such thing as "provisional income". What they mean is Taxable income that falls below the threshold; and/or where the calculated tax liability is covered by PAYE. Taxpayers over 65 don't need to pay prov tax if income is less than R120 000, and they are nut running a business.

  • Hugh - 2010-07-16 18:12

    SARS advised that the old IRP6 forms would not be accepted after 26 June 2010

  • NAM - 2010-07-22 06:43

    The tax system hear is ridiculous, please explain why if you work full time and have no additional income and your employer pays your PAYE you need to fill in a tax return? the owness should fall on the employer to ensure you are paying the correct amount of tax,SARS could save themselves millions in admin costs if they relaxed the threshold in fact scrapped the threshold completely if you only have a primary income and get no other income from private investments or travel allowance.

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