Provisional Tax

[StephanieB]

Hi everyone

I am looking for a bit of help on prov taxes. 1.
1. If I pay prov taxes how do I bring that into account on my Income Tax that I send to SARS.

It will help me a lot to understand if you can give me a simple example on how provisional taxes really works.

Thanks so much

[geraldenek]

Provisional tax and income tax is two seperate "accounts" you do not need to declare on your income tax return how much you have paid for provisional tax - SARS will bring this into account.

Provisional tax is there in order for SARS to collect money earlier. To give you an example. Say for instance you need to pay R5000 for the 2012 tax year (estimated).

Now you pay R2500 in Aug 2011 and R2500 in Feb 2012. Your income tax return submission will open in +/- July 2012 but only due if you are registered for efiling in Jan 2013. Now SARS has to wait till Jan 2013 to receive the R5000 if there was not provisional tax for a tax period that ended Feb 2012.

[StephanieB]

Thanks so much, you are a star.

[kahoel117]

from next year i'm paying someone to do my tax stuff. doing it myself is a hassle, especially when i dont get money back

[geraldenek]

from next year i'm paying someone to do my tax stuff. doing it myself is a hassle, especially when i dont get money back

The thing is for people with no deductions everything is straight foward. But I had this conversation the other day:

If i want to put a plug on a cable - that is pretty easy for me. I can install a light in my ceiling from asking people or using google - but will i do this - no.... i would rather get someone to do this and pay them as the risk are a bit bigger.... the same goes for tax....

Getting someone to help you with tax is not just in the filling of the return...... i have comed across new clients and will always check their last 3 year tax returns submitted - and i find that i have asked them to ask their employer to ammend the certificate as this is not correct. They did not notice this when they submitted the return cause they don't know how everything works and thus resulted in refunds to them.

Employers also makes mistakes.

[kahoel117]

great info.
will definitely be bugging you next year.