Good Day

I hope this is the correct forum for my question, and that someone can assist.

I understand that Provisional Tax in South Africa is submitted to SARS on an IRP6 twice a year, and an optional 3rd submission can be made should there have been any under or over submission from the first two submissions. Thereafter The final Income Tax return is done one year after the end of the Financial Year, and an ITR14 is submitted.

My question is relating to the actual calculation, and slight difference in submission.

For your IRP6 Return, the following is calculated (Gross Income less Cost of Sales and Expenses = Taxable Income | Tax on Estimated Taxable Income less Employees Tax (PAYE) = Amount Payable).

On the ITR14 Submission the PAYE is included in the Salaries and Wages Expenses before determining Taxable Income, and therefor tax payable, and not deducted after the Tax has been calculated. Does this not mean that there will actually be an additional amount payable by the end of the year due to this difference in calculation?

Would appreciate some clarity on this.

Best Regards