Provisional tax basic amount

[keitht]

Hi. If my taxable income is under R1million as far as I understand I can pay provisional tax on the basic amount that SARS provides on the IRP6?

Example - basic amount (including the 8% increase) is R250 000. My taxable income will be R350 000. I can pay provisional tax on the R250 000 without incurring any penalties

Thank you

[dellatjie]

Keitht,

If your basic amount is for the 2013 assessment, you do not need to add 8%.

But yes, should your final taxable income be below R1 million, you are allowed to use the lower of the basic amount or 90% of actual to prevent underestimation penalties.