Have your bookkeeper/auditor register you with SARS with regards to the following:
- Income Tax.
- PAYE – pay as you earn.
- UIF- unemployment insurance fund.
- SDL- skills development levy.
- VAT (If applicable)- value added tax 15%.
Provisional tax is not a separate tax from Income Tax. It is a method of paying the income tax liability in advance, to ensure that the taxpayer does not have a large tax debt on assessment. Provisional tax allows the tax liability to be spread over the relevant year of assessment. It requires the taxpayers to pay at least two amounts in advance, during the year of assessment, which are based on the estimated taxable income. A third payment is optional after the end of the tax year, but before the issuing of the assessment by SARS. On assessment, the provisional payments will be off-set against the liability for normal tax for the applicable year of assessment.
Companies automatically fall into the provisional tax system. There is no longer a registration or deregistration process to be a provisional taxpayer. The onus is on the taxpayer to determine if he/she is liable for provisional tax, and to request and submit an IRP6 return via eFiling.
