When is provisional tax due in South Africa?

There are two compulsory payments per tax year: the first is due by the end of the sixth month (end of August for a February year-end) and the second by the last day of the tax year (end of February). An optional third 'top-up' payment can be made about six months after year-end to avoid interest on any shortfall.

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Tax & SARS · Updated June 2026 · ~7 min read

Provisional tax in South Africa, explained

Q: Who must pay provisional tax in South Africa?

You are a provisional taxpayer if you earn income that isn't only salary with PAYE deducted — typically sole proprietors, freelancers, business owners, and people with significant rental, interest or other income. Companies are automatically provisional taxpayers. Salaried employees with no other meaningful income generally are not.

Q: How is provisional tax calculated?

You estimate your total taxable income for the year, work out the tax on it using the normal tax tables, and pay it in instalments via the IRP6 return — the first payment covering roughly half, the second bringing you up to the full estimate. Accurate income and expense records make the estimate reliable and reduce the risk of under-estimation penalties.

If you run your own business or freelance, "provisional tax" is the bit nobody explained when you started. It's not a separate tax — it's just paying your income tax in instalments. Here's who has to, when it's due, and how to estimate it without nasty surprises.

The short version

It's a way of paying income tax in advance, not an extra tax.
Sole proprietors, freelancers and business owners are usually provisional taxpayers.
Two compulsory payments: end of August and end of February (for a Feb year-end).
Under-estimate badly and SARS charges penalties — accurate records matter.

What provisional tax is

A salaried employee has PAYE deducted from every payslip, so their income tax is paid as they earn. If you earn business or freelance income, nobody's deducting tax for you — so SARS asks you to estimate your income and pay the tax in instalments through the year, rather than facing one enormous bill at assessment. That's provisional tax. It's the same income tax; you're just paying it in advance via the IRP6 return.

Who is a provisional taxpayer?

You're generally a provisional taxpayer if you earn income that isn't only a salary with PAYE already deducted. That typically includes:

Sole proprietors and freelancers earning business or trade income.
Business owners drawing profits rather than (or in addition to) a salary.
People with significant rental, interest or investment income on the side.
Companies, which are automatically provisional taxpayers.

A purely salaried employee with no meaningful other income usually isn't a provisional taxpayer. There are thresholds and exclusions, so if you're unsure, check with a tax practitioner.

The payment dates

For the common February tax year-end, there are two compulsory payments and one optional one:

Payment	Due	Covers
First (IRP6)	End of August (6 months in)	Roughly half your estimated annual tax
Second (IRP6)	End of February (year-end)	The balance up to your full estimate
Third (optional top-up)	About 6 months after year-end	Any shortfall, to limit interest

If your business has a different financial year-end, shift these by the same months. The third "top-up" payment isn't compulsory, but it's a useful way to settle any under-payment before SARS charges interest.

How to estimate what you owe

The core task is estimating your taxable income for the year — your business income minus your deductible expenses. You then apply the normal tax tables to get the tax, and split it across the two payments.

The accuracy of that estimate is everything. Over-estimate and you've handed SARS cash you didn't need to; under-estimate and you can face an under-estimation penalty plus interest. The way to get it right is to know your actual numbers — and that comes straight from good, current records.

Why your receipts decide your tax bill

Every deductible expense you capture lowers your taxable income — and therefore your provisional tax. Miss them, and you over-estimate your profit and over-pay. Keep them all, and your estimate is both lower and defensible. Provisional tax is one of the clearest cases where sloppy receipt-keeping literally costs you cash twice a year.

Avoiding penalties

Don't miss the dates — late payment attracts penalties and interest.
Estimate honestly — a serious under-estimate on the second payment can trigger an under-estimation penalty.
Keep money aside — set aside a percentage of every payment received so the IRP6 doesn't sting.
Reconcile against real numbers — base the estimate on captured income and expenses, not a gut feel.

How SlipStack helps

SlipStack keeps a live, categorised record of your business spending in a Google Sheet cost dashboard — so when an IRP6 is due, your deductible expenses are already tallied and your taxable-income estimate is grounded in real figures, not a guess. Every receipt is filed to your own Drive, ready if SARS asks. See the expense tracker →

This guide is general information, not tax advice. Provisional-tax rules, dates and penalty calculations are detailed and change over time — confirm your obligations with SARS or a registered tax practitioner.

Frequently asked

Who must pay provisional tax in South Africa?

Anyone earning income that isn't only PAYE-deducted salary — sole proprietors, freelancers, business owners, and people with significant rental, interest or investment income. Companies are automatically provisional taxpayers.

When is provisional tax due?

Two compulsory payments: the first by the end of the sixth month (end of August for a February year-end) and the second by year-end (end of February). An optional third top-up can be made about six months later.

How is provisional tax calculated?

Estimate your taxable income for the year, apply the normal tax tables, and pay it across the two IRP6 instalments. Accurate income and expense records keep the estimate reliable and avoid under-estimation penalties.

What happens if I under-estimate?

A significant under-estimate on the second payment can trigger an under-estimation penalty plus interest. Basing your estimate on captured, up-to-date figures — and using the optional third payment to top up — reduces the risk.

Know your numbers before the IRP6 is due

SlipStack keeps your deductible expenses tallied all year — so estimating provisional tax isn't guesswork.

Try SlipStack free for 30 days

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