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SARS Provisional Tax in South Africa (2026/2027) — IRP6, Deadlines & Underestimation Penalties

Reviewed & Verified
Written by the Independent Editorial Team · Reviewed & Verified by Solly Maanaso, CA(SA)

Provisional tax is not a separate tax — it is a mechanism for paying your normal income tax liability in advance during the tax year, so that you do not face a large lump-sum payment at assessment. It is governed by the Fourth Schedule of the Income Tax Act 58 of 1962 and administered by SARS. This guide explains who must pay provisional tax, how to calculate each payment, when each deadline falls, and how to avoid penalties.

JUMP TO: What is provisional tax? Am I a provisional taxpayer? Deadlines How to calculate First payment Second payment Third payment Penalties How to submit IRP6 FAQ

What is provisional tax in South Africa?

Provisional tax is not a separate tax. It is a method of paying your normal income tax liability in advance during the tax year, to ensure you do not face a large debt to SARS at assessment. When you file your annual income tax return (ITR12), your provisional tax payments are offset against your final tax liability. Any overpayment is refunded; any shortfall must be paid.

Source: SARS — Provisional Tax — sars.gov.za/types-of-tax/provisional-tax/

South Africa's income tax system collects tax in different ways depending on how you earn your income:

  • Salaried employees have tax deducted monthly through PAYE (Pay As You Earn) — so they pay tax throughout the year without needing to do anything additional.
  • Individuals and businesses with non-salary income — such as freelancers, self-employed professionals, sole proprietors, directors, landlords, and investors — do not have an employer deducting PAYE on their behalf. Without provisional tax, they would only pay their full income tax liability after filing their annual return, potentially months after the income was earned. This creates both a cash flow problem for the taxpayer and a revenue collection problem for SARS.

Provisional tax solves this by requiring these taxpayers to estimate their income for the year and make advance payments — typically twice a year — so that the tax burden is spread over the year.

How the system works

  • Estimate: You estimate your taxable income for the full year of assessment.
  • Calculate: You calculate the tax on that estimate (using the income tax tables, minus rebates).
  • First Payment: You make your first provisional payment (IRP6) within 6 months of the start of the tax year.
  • Second Payment: You make your second provisional payment (IRP6) at the end of the tax year.
  • Optional Top-Up: You may make an optional third top-up payment to avoid interest.
  • Final Assessment: You file your annual ITR12 return — SARS calculates your actual tax liability and offsets your provisional payments against it.
  • Outcome: If you overpaid: SARS refunds the difference. If you underpaid: you pay the balance (plus potential interest and penalties).
Important note: Provisional tax payments cannot be refunded before assessment or reallocated to a different tax period or to a different taxpayer.
Source: SARS Guide to Provisional Tax — sars.gov.za

Am I a provisional taxpayer?

The onus is on you — not SARS — to determine whether you are liable for provisional tax and to request and submit your IRP6 return accordingly. There is no longer a formal registration or deregistration process for provisional tax status; the responsibility rests with the taxpayer.
Source: SARS — Provisional Tax — sars.gov.za/types-of-tax/provisional-tax/

YOU ARE a provisional taxpayer if any of the following apply:
  • Individuals:
  • You earn income that is not remuneration (i.e., not a salary from an employer registered for PAYE) and that income exceeds R30,000 for the tax year
  • You are a director of a private company (including members of a close corporation)
  • You receive rental income that causes your total taxable income to exceed R30,000
  • You receive freelance, consulting, or self-employment income
  • You receive investment income (interest, dividends) above the applicable exemption thresholds that is not adequately covered by PAYE
  • You receive income from more than one employer and insufficient PAYE has been withheld
  • You were notified by SARS that you must register as a provisional taxpayer
  • Companies and trusts:
  • All companies automatically fall into the provisional tax system, regardless of whether they are trading or dormant
  • All trusts (other than those where all income is vested in beneficiaries who pay the tax) are provisional taxpayers
You are NOT a provisional taxpayer solely because of:
  • Interest income of less than R23,800 (if you are under 65) or less than R34,500 (if you are 65 or older) — these amounts fall within the exemption under Section 10(1)(i) of the Income Tax Act
  • Exempt dividends under Section 10(1)(k)
  • Income that is solely remuneration from a single employer registered for PAYE, where sufficient tax has been deducted
Updated Budget 2026 update — expanded definition: With effect from 1 March 2025, labour brokers who received an approved certificate of exemption are included in the definition of provisional taxpayer and must now submit IRP6 returns.
Source: SARS Changes for 2025 Filing Season — sars.gov.za
Quick test: If you earn any income outside of a regular salary on which PAYE is fully deducted — rental income, freelance work, investment income above the exemption thresholds, business profits — you are almost certainly a provisional taxpayer. When in doubt, consult a registered tax practitioner.

Provisional tax deadlines

Provisional taxpayers must submit two mandatory IRP6 returns and payments each year, plus an optional third top-up payment. The deadlines below apply to individuals and trusts with a February year-end — the most common structure for South African individual taxpayers.

Payment Due Date Who It Applies To
1st provisional payment (IRP6) 31 August 2026 All individual provisional taxpayers and trusts (Feb year-end)
2nd provisional payment (IRP6) 28 February 2027 All individual provisional taxpayers and trusts (Feb year-end)
3rd (optional top-up) payment 30 September 2027 All individuals and trusts wishing to avoid interest
ITR12 filing deadline (provisional taxpayers) 22 January 2027 Provisional taxpayers filing via eFiling

Note: If a deadline falls on a Saturday, Sunday, or public holiday, the payment is due on the last business day before that date.
Source: SARS Calendar — sars.gov.za/individuals/i-need-help-with-my-tax/calendar/; SARS Auto-Assessment Filing Season page — sars.gov.za

Completed 2025/2026 deadlines (for context):

Payment Date
1st provisional payment (2026 YOA) 31 August 2025
3rd top-up payment (2025 YOA) 30 September 2025
2nd provisional payment (2026 YOA) 28 February 2026
ITR12 deadline — provisional taxpayers (2025 YOA) 19 January 2026
Companies — different deadline structure:
Companies do not follow the same calendar as individual taxpayers. Their deadlines depend on their financial year-end:
- 1st payment: 6 months after the start of the financial year
- 2nd payment: On the last day of the financial year
- 3rd (optional): 6 months after the end of the financial year
Companies with a February year-end follow the same dates as individuals above.
Days until next IRP6 deadline (31 August 2026)
-- days

How to calculate provisional tax

The amount of provisional tax you pay is based on your estimated taxable income for the full year of assessment — not just the first six months. The calculation uses the same income tax tables as your final annual assessment. SARS provides each provisional taxpayer with a pre-populated basic amount on the IRP6 return as a reference point.

What is the "basic amount"?

The basic amount is the taxable income assessed by SARS on your most recent income tax assessment, minus any taxable capital gain included in that assessment.

  • If your most recent assessment is less than 18 months old, SARS uses it directly as the basic amount
  • If your most recent assessment is more than 18 months old, SARS increases the basic amount by 8% per year for each year of delay
  • The basic amount is printed on the IRP6 return that SARS issues on eFiling — taxpayers can see it when they request their IRP6

Source: SARS Guide for Provisional Tax (GEN-PT-01-G01), effective 27 June 2025 — sars.gov.za

Step-by-step: First provisional payment (1st period)

Step 1: Determine your estimated taxable income for the full year
This is your best estimate of total taxable income for the entire tax year (1 March to 28 February). Your estimate may not be less than the basic amount (unless you can justify a lower amount to SARS). There is no underestimation penalty for the first period if your estimate meets the basic amount rule.

Step 2: Calculate the tax on that estimated income
Apply the current income tax bracket table to your estimated taxable income. Deduct applicable rebates (primary rebate: R17,820 for 2026/2027; secondary/tertiary if applicable). Deduct medical scheme fees tax credit if applicable. Deduct any foreign tax credits applicable for the period.

Step 3: Calculate the first payment
First payment = 50% of the annual tax calculated in Step 2. If PAYE was deducted from any remuneration during the first six months, deduct that PAYE amount from the 50%.

First payment = [(Annual estimated tax × 50%) − PAYE already deducted in first 6 months]
Item Amount
Estimated annual taxable income R500,000
Tax on R500,000 (2026/2027 brackets) R80,038 + 31% × (R500,000 − R383,100)
Tax before rebates R80,038 + R36,239 = R116,277
Less: Primary rebate (R17,820)
Annual tax liability R98,457
First payment (50%) R49,229

Step-by-step: Second provisional payment (2nd period)

The second payment is more complex because it requires a more accurate estimate of your full year's taxable income, and the rules differ depending on whether your income is above or below R1 million (threshold being increased to R1.8 million per Budget 2026 proposals).

Step 1: Update your income estimate
By the end of the tax year, you should have a much clearer picture of your actual annual income. Update your estimate to reflect this.

Step 2: Calculate the annual tax on the updated estimate
Apply the income tax bracket table, less all applicable rebates and credits (same method as first payment).

Step 3: Calculate the second payment

Second payment = Annual tax on updated estimate − First payment already made − PAYE withheld during the year

Acceptable estimation tolerances for the second period:

Actual taxable income Minimum estimate (2nd period) Underestimation penalty risk
R1 million or less Estimate must be ≥ 90% of actual taxable income, AND ≥ basic amount 20% penalty on shortfall if estimate falls below both thresholds
Above R1 million Estimate must be ≥ 80% of actual taxable income 20% penalty on the difference if estimate falls below 80%
Budget 2026 update Budget 2026 (announced 25 February 2026) proposed increasing the R1 million threshold to R1.8 million. Confirm the effective date and implementation status on sars.gov.za before publishing.
Source: Cliffe Dekker Hofmeyr Tax Alert, 25 February 2026; SARS Fourth Schedule

Third (optional top-up) payment

The third payment is not mandatory but is available as an optional tool to avoid interest on any underpayment discovered at annual assessment.

  • Due date: 30 September (for individuals and trusts with February year-end)
  • The third payment is based on the taxpayer's actual taxable income for the completed year
  • It is particularly useful when the first two payments underestimated income but the taxpayer did not want to be penalised for the second period estimate
Important: The third payment is a fine-tuning tool — it does not substitute for correct first and second period estimates. SARS has clarified that many taxpayers mistakenly plan to "catch up" at the third payment, which can still result in underestimation penalties from the second period.

Provisional tax penalties and interest

SARS levies two types of penalties on provisional taxpayers: a late payment penalty for missing the deadline, and an underestimation penalty for significantly understating taxable income on the second IRP6. Interest is also charged on any outstanding amounts.

Late payment penalty (10%)

10% penalty
A 10% penalty is levied on the total tax due if the IRP6 payment is made after the due date — even if it is only one day late. This applies to both the first and second provisional periods.

Example: If your second provisional tax payment is R80,000 and you pay it one day late, SARS will levy a penalty of R8,000 (10% × R80,000).

Underestimation penalty (20%)

An underestimation penalty is levied when your second period estimate of taxable income falls significantly below your actual taxable income.

If your actual taxable income is R1 million or less:

  • Penalty applies if your estimate was less than 90% of actual taxable income AND less than the basic amount
  • Penalty = 20% of the difference between the tax on your estimate and the tax on 80% of actual taxable income

If your actual taxable income is above R1 million:

  • Penalty applies if your estimate was less than 80% of actual taxable income
  • SARS does not apply the basic amount rule at this income level
  • Penalty = 20% of the difference between the tax on your estimate and the tax on 80% of actual taxable income
Budget 2026 update Budget 2026 (25 February 2026) proposed increasing the R1 million threshold to R1.8 million, making the more lenient 80% rule available to a broader range of taxpayers. Additionally, from 25 February 2026, timely payment of the estimated amount is being made a condition for avoiding the underestimation penalty — if you submit an accurate estimate but do not pay on time, you may lose the protection against the underestimation penalty. Confirm the effective date on sars.gov.za.
Source: Cliffe Dekker Hofmeyr Tax Alert, 25 February 2026; Budget 2026 proposals

Worked penalty example (income ≤ R1 million):

Actual taxable income R700,000
90% of actual income R630,000
Basic amount R600,000
Taxpayer's 2nd period estimate R500,000
Estimate below 90%? Yes (R500k < R630k)
Estimate below basic amount? Yes (R500k < R600k)
Penalty triggered? Yes
Penalty = 20% × difference 20% of the tax shortfall

Interest on underpayments

  • Interest is charged on any underpaid amount from the effective date of the payment until the date it is settled
  • The applicable interest rate is prescribed under Section 187 of the Tax Administration Act 28 of 2011 and changes from time to time — check sars.gov.za for the current rate
  • Interest accrues daily until the full amount is paid

Can provisional tax penalties be reversed?

SARS has a process to request remission of penalties in cases of exceptional circumstances. However, remission is not guaranteed. The strongest grounds for remission are:

  • A natural disaster, serious illness, or other unforeseen event that genuinely prevented compliance
  • The taxpayer has a clean compliance history
  • The failure was not deliberate

For underestimation penalties, it is significantly harder to obtain remission than for late payment penalties. The best approach is always to estimate conservatively and pay on time.

How to submit your IRP6 on SARS eFiling

The IRP6 return must be submitted via SARS eFiling (sarsefiling.co.za) or the SARS MobiApp. You must submit an IRP6 for both the first and second period, even if the result is zero (i.e., no payment is due).
Source: SARS Provisional Tax — sars.gov.za/types-of-tax/provisional-tax/

01

Activate provisional tax on your eFiling profile (first time only)

  • Log in to sarsefiling.co.za
  • Navigate to: Home → User → Tax Types → Manage Tax Types
  • Tick the box next to Provisional Tax (IRP6) and your income tax reference number
  • Click Register / Save
02

Request your IRP6 return

  • Navigate to: Returns → Returns Issued → Provisional Tax (IRP6)
  • Select the correct tax period from the dropdown (e.g., "2027 — 1st Period" or "2027 — 2nd Period")
  • Click "Request Return"
03

Review the pre-populated basic amount

  • SARS will display the basic amount based on your most recent assessment
  • Review whether this figure is accurate for your current circumstances
  • If your income has changed significantly, update your estimate accordingly
04

Enter your estimated taxable income

  • Complete the estimate of taxable income for the full year of assessment
  • Your estimate may not be less than the basic amount (unless you have grounds to justify a lower amount)
  • The IRP6 will automatically calculate the provisional tax due based on your input
05

Review and submit the return

  • Review the calculated payment amount
  • Click "Submit" to file the return
06

Make the payment

  • After submitting, generate the payment advice from eFiling
  • Pay via eFiling payment, Internet banking, or SARS branch
  • Ensure payment is received by SARS before the deadline — not merely initiated
Key reminder: A submitted return without payment is not sufficient. SARS levies the 10% late payment penalty on the outstanding amount, even if the IRP6 was submitted on time. Payment must be received by the deadline.

Provisional tax guides for specific taxpayer types

Freelancers & self-employed
How to estimate irregular income, logbook, deductible expenses, tips for first-timers
Provisional tax for freelancers →
Companies (all businesses)
All companies are automatic provisional taxpayers — deadlines, dormant company obligations
Provisional tax for companies →
Trusts
Special rules for trusts, IT3(t) return, ITR12T filing deadline
Provisional tax for trusts →

Frequently Asked Questions

Provisional tax is not a separate tax — it is a mechanism for paying your normal income tax liability in advance during the year. When you file your annual ITR12, your provisional payments are offset against your final income tax liability. Any overpayment is refunded; any shortfall is paid at assessment.
There is no separate registration process. The onus is on you to determine if you are a provisional taxpayer and to activate the IRP6 tax type on your SARS eFiling profile. Companies automatically fall into the provisional tax system without needing to register separately.
For individuals and trusts with a February year-end, the first provisional payment (IRP6) is due by 31 August, and the second is due by the last business day of February. An optional third top-up payment is due by 30 September. These dates apply to the 2026/2027 tax year.
The IRP6 is the provisional tax return form submitted on SARS eFiling. Provisional taxpayers must request and submit an IRP6 for both the first and second periods — even if no payment is due. The IRP6 is requested under Returns → Provisional Tax (IRP6) on eFiling.
Missing the deadline triggers a 10% late payment penalty on the total tax amount due, regardless of how late the payment is. Interest also accrues daily on outstanding amounts. Both the IRP6 return must be submitted and the payment received before the deadline to avoid penalties.
The basic amount is your taxable income from your most recent income tax assessment, minus any taxable capital gain. SARS pre-populates this on your IRP6. Your estimate of taxable income for the second period generally may not be lower than the basic amount. If the most recent assessment is older than 18 months, the basic amount is increased by 8% per year.
If your second provisional tax estimate significantly understates your actual taxable income, SARS levies a 20% underestimation penalty on the tax shortfall. For income up to R1 million (proposed R1.8 million), the penalty applies if your estimate is less than 90% of actual income and less than the basic amount. For income above this, the estimate must be at least 80% of actual income.
Yes. Provisional tax payments are advance payments only. After the end of the tax year, you must still submit your annual income tax return (ITR12). Your provisional payments will offset your final tax liability. The filing deadline for provisional taxpayers is later than for non-provisional taxpayers.
The third payment is a voluntary top-up payment available to reduce or eliminate interest on any underpayment at final assessment. It is due by 30 September (for February year-end taxpayers). It is not mandatory, but useful when your actual income turns out to be significantly higher than your second period estimate.
Yes. All companies automatically fall into the provisional tax system — including dormant companies that are not trading. A company must submit IRP6 returns for both periods, even if the result is zero tax payable. Failure to submit can result in administrative penalties.

Related guides

Specific scenarios & taxpayers

Essential tax guides

Calculators & tools

Sources and references

All provisional tax information on this page is sourced from, or verified against, the following official and authoritative references:

  1. Income Tax Act 58 of 1962 — Fourth Schedule (provisional tax provisions) — sars.gov.za/legal-counsel/primary-legislation/
  2. Tax Administration Act 28 of 2011 — Section 187 (interest provisions)
  3. SARS — Provisional Tax — sars.gov.za/types-of-tax/provisional-tax/
  4. SARS Guide for Provisional Tax (GEN-PT-01-G01) — sars.gov.za/types-of-tax/provisional-tax/

This page was last reviewed in March 2026 by Author Name, CA(SA). It will be reviewed again following the National Budget Speech in February 2027 and before the first IRP6 deadline in August 2027.