What happens if my business made a financial loss? Do I still need to submit an IRP6?

Yes. Every provisional taxpayer must submit an IRP6 return, even if your taxable income is zero or you operated at an assessed loss. You must declare your position by submitting a 'nil' return on eFiling. Failing to submit an IRP6 return leads to automated non-submission penalties and flags your enterprise as non-compliant on the SARS Tax Compliance Status (TCS) system.

How does the third voluntary provisional tax payment work?

The third provisional payment, known as a top-up payment, is voluntary. It allows taxpayers to pay any tax shortfall discovered after the financial year has ended. For taxpayers with a February year-end, this payment must be made on or before 30 September. Making a top-up payment stops SARS from running non-deductible interest under Section 89quat on any underpayment between your second return and your final assessment.

Can SARS waive a 20% underestimation penalty?

Yes. Under Paragraph 20(2) of the Fourth Schedule, the SARS Commissioner has the discretionary power to remit the whole or part of an underestimation penalty. To succeed, your tax practitioner must submit a formal Request for Remission proving that your estimate was calculated with serious care, and that the underestimation resulted from unpredictable circumstances beyond your commercial control.

What is the difference between provisional tax and PAYE?

Pay-As-You-Earn (PAYE) is employee tax withheld monthly by an employer from regular salaries and paid directly to SARS via EMP201 submissions. Provisional tax is paid directly by the taxpayer (or business) on earnings that have not been subjected to monthly PAYE deductions, such as business profits, director fees, rental income, and investments.

Provisional Tax Guide 2026: Deadlines, Rates & SARS Penalties