Provisional Tax (IRP6)

Enquire today about our Provisional Tax

Provisional Tax (IRP6) — Cape Town (Companies & Trusts)

Provisional tax is not a separate tax. It’s how SARS collects your company or trust’s normal income tax during the year via the IRP6 return. Done properly, provisional tax keeps you compliant, penalty‑free and in control of cash flow. We use clean cloud accounting (Xero, Sage, QuickBooks Online) and a clear tax forecast so you always know what your next provisional tax payment will be. Book a free 20‑minute consult and we’ll map your next provisional tax steps.

Provisional Tax (IRP6) •Estimate• Submit • Avoid Penalties

What is provisional tax?

For South African companies and trusts, provisional tax is simply paying your expected income tax in advance in two main instalments using the IRP6 return. For a February year‑end the pattern is:
• Period 1 (first provisional tax payment) at the end of August, and
• Period 2 (second provisional tax payment) at the end of February,
with an optional September IRP6 top‑up if the year finishes stronger than expected. Other financial year‑ends follow the same logic, just with different IRP6 due dates.

Who must do provisional tax?

On this page we focus on:

Companies that earn taxable income in South Africa.
Trusts (including property and investment trusts) that earn taxable income.
Individuals with significant non‑PAYE income (rental, freelance, investment income) are handled on a separate provisional tax for individuals page.

Key IRP6 dates (February year‑end example)

End August — 1st IRP6 (6‑month provisional tax payment).
End February — 2nd IRP6 (year‑end provisional tax payment).
End September — optional IRP6 top‑up to reduce interest if taxable income is higher than expected.

For other financial year‑ends, the same provisional tax rules apply — only the IRP6 due dates shift.

Under‑estimation and late‑payment penalties

Provisional tax penalties from SARS are nasty but completely avoidable if you estimate correctly and pay on time.

Taxable income ≤ R1 million: your Period‑2 provisional tax estimate must be at least the SARS “basic amount” or 90% of the final taxable income — otherwise a 20% under‑estimation penalty can apply.
Taxable income > R1 million: your Period‑2 provisional tax estimate must be at least 80% of the final taxable income — otherwise a 20% under‑estimation penalty can apply.
Late payment: 10% late‑payment penalty plus interest until the IRP6 amount is settled.

How we handle provisional tax (cloud‑first, fast)

We run provisional tax as part of a broader cloud‑accounting process — not a last‑minute spreadsheet panic.

Connect & clean — Xero / Sage / QuickBooks Online bank feeds, rules and document capture; monthly management accounts kept up to date.
Model your year — rolling 12‑month forecast including seasonality, once‑off items, capex, allowances, taxable capital gains and planned dividends.
Estimate smart — choose a SARS‑safe provisional tax estimate that satisfies the 90%/80% rules while protecting your company or trust’s cash flow.
File on time — IRP6 returns submitted via SARS eFiling, with payment references and proof of submission archived.
Top‑up if needed — calculate the optional September top‑up to reduce interest where it makes sense.

What you get from our provisional tax service

IRP6 preparation and submission for Period 1 and Period 2, plus advice on the optional September top‑up.
Penalty‑aware provisional tax estimate aligned to the 90%/80% rules and your SARS basic amount.
Forecast pack: 12‑month profit & loss, simple cash‑flow view and company tax estimate so you can plan ahead.
SARS payment reference and IRP6 submission proofs archived in your cloud accounting folder.

Ready to sort your IRP6 properly?

Cape Town‑based, cloud‑first and penalty‑averse. We help South African companies and trusts stay on top of provisional tax, IRP6 submissions and SARS deadlines while keeping cash flow predictable.

Book a free 20‑minute online or in‑person consult and we’ll map your next provisional tax steps.

Provisional Tax (IRP6)

Enquire today about our Provisional Tax