Companies
Companies generally fall into the provisional-tax system. The calculation must be based on the company’s applicable year of assessment and financial year-end.
Provisional tax due? · August 2026 IRP6
Provisional tax is an estimate. It should never be a guess.
Your August IRP6 should be based on current financial information and a reasonable forecast—not an unsupported figure.
Smarter Accounting reviews your year-to-date results, expected income and remaining expenses to prepare a defensible provisional-tax estimate. We explain the figure, assist with the IRP6 submission and help you meet the deadline.
- Qualified accounting and tax support
- Personal assistance from David Hartley
- Cape Town based, serving South Africa
The simple explanation
Provisional tax is not an extra tax.
It is a method of paying expected income tax in advance during the year. The payments are credited against your final normal tax assessment. A sensible estimate can spread the tax burden and reduce the risk of a large unexpected amount later.
It normally requires at least two advance calculations and payments. A third, voluntary top-up payment may be made where appropriate.
Who may need to submit?
IRP6 help for businesses and individuals
Sole proprietors & freelancers
Individuals earning business or freelance income that is not fully covered through PAYE.
Rental and other income
Individuals receiving qualifying rental, investment, foreign or other income outside normal remuneration.
Directors & shareholders
Directors and shareholders who earn additional income or whose complete tax liability is not adequately covered through PAYE.
Trusts
Trusts that fall within the provisional-tax requirements.
Exclusions may apply. A person’s exact provisional-tax status must be determined from their circumstances.
Across the tax year
First, second and top-up payments
First IRP6
An estimate based on expected taxable income for the full year, with the first-period calculation and applicable credits taken into account.
Second IRP6
An updated full-year estimate using more complete actual results and the latest year-end forecast.
Top-up Payment
An additional payment after year-end where appropriate to reduce a remaining shortfall before assessment.
How the calculation works
What Smarter Accounting reviews
Good estimates start with actual figures, then look forward. They should not be calculated from turnover alone, and a nil estimate should never be submitted automatically without supporting circumstances.
Send David my figures- Actual income and expenses to date
- Expected income and expenses
- Latest management accounts
- PAYE already deducted
- Previous provisional-tax payments
- Rental and freelance income
- Investment and foreign income
- Capital gains and asset disposals
- Medical tax credits
- Assessed losses
- Once-off transactions
- Changes expected before year-end
Reasonable beats rushed
A rushed estimate can leave a costly gap.
Late submission, late payment or an unreasonable underestimation can result in penalties and interest. A provisional-tax estimate should be based on current financial information and a reasonable forecast—not an unsupported or last-minute figure.
Straightforward from start to finish
Three steps to a stronger IRP6 estimate
Send your latest figures
Provide the latest bookkeeping, income, expense and available tax information.
We review and forecast
We review the year-to-date position and forecast the likely taxable income.
IRP6 and payment guidance
We prepare the calculation and assist with submission and payment guidance.
WhatsApp readiness check
Check if you’re ready for your August IRP6.
Send David a short WhatsApp message. To make the first review useful, tell him:
- Whether you are an individual, company or trust
- Your applicable financial year-end
- Whether your bookkeeping is up to date
- Whether you expect a profit, loss or major income change
- Whether you have rental, investment, foreign or capital-gains income
Personal, practical support
A real accountant behind the calculation.
David Hartley is the owner of Smarter Accounting, an independent Cape Town accounting and tax practice.
He helps individuals, sole proprietors and South African SMEs with accounting, tax, cloud bookkeeping, payroll and management reporting.
David’s approach is practical: understand the numbers, ask the next question and make sure the tax calculation reflects the underlying business or personal circumstances.
Frequently asked questions
Clear answers about provisional tax
What is provisional tax?
Provisional tax is a method of paying expected income tax in advance during the year. It is not an additional tax.
Is provisional tax a separate tax?
No. Provisional-tax payments are credited against the taxpayer’s final normal income-tax assessment.
Who must submit an IRP6?
Companies, trusts and certain individuals earning income that is not fully covered by PAYE may be required to submit provisional-tax returns.
When is the first provisional-tax payment due?
The first payment is generally due six months after the start of the applicable year of assessment.
When is the second provisional-tax payment due?
The second payment is generally due on the final business day of the applicable year of assessment.
Can I simply submit a nil estimate?
A nil estimate should only be submitted where it is reasonable and supported by the taxpayer’s actual financial position.
How should provisional taxable income be estimated?
The estimate should use current year-to-date figures, expected income, remaining expenses and any significant transactions likely to occur before year-end.
What information is needed to prepare an IRP6?
This normally includes bookkeeping records, management accounts, income and expense information, PAYE already deducted and previous provisional-tax payments.
What happens if the estimate is too low?
An unreasonable underestimation may result in penalties and interest, depending on the taxpayer’s circumstances and the final assessment.
Can a provisional-tax return be corrected?
Corrections may be possible depending on the return status, submission period and available SARS processes. The position should be reviewed before taking action.
View more provisional-tax questions
Is a top-up payment compulsory?
A top-up payment is generally voluntary, but it may help reduce interest where insufficient tax has been paid.
Does PAYE reduce provisional tax?
PAYE already deducted is normally taken into account when the provisional-tax payment is calculated.
How are rental and freelance earnings treated?
Taxable rental and freelance income may need to be included in the provisional-tax estimate.
Do companies automatically fall into the provisional-tax system?
Companies generally fall within the provisional-tax system, subject to the applicable tax rules.
Are trusts provisional taxpayers?
Trusts generally fall within the provisional-tax system, subject to the applicable tax rules and exclusions.
Can penalties and interest be disputed?
A dispute may be possible in some circumstances. The assessment, reasons and available SARS process should be reviewed before action is taken.
What happens if my income changes during the year?
The latest available information and forecast should be used so that the estimate reflects material changes expected before year-end.
Does provisional tax apply to capital gains?
Expected taxable capital gains may need to be considered when estimating provisional taxable income.
What should I do if my bookkeeping is not up to date?
Update the available financial information as far as possible and obtain assistance before submitting an unsupported estimate.
Can Smarter Accounting submit the IRP6 for me?
Smarter Accounting can assist with reviewing the figures, preparing the calculation and handling the submission process, subject to the required information and authorisation.
Your next step can be simple
Let’s get your provisional tax sorted.
You do not need to work everything out before asking for help. Tell David briefly what assistance you need, and we will explain the documents, calculations and next steps.
Send David a short, confidential WhatsApp message. Tell us whether you need assistance with an IRP6 calculation, a provisional-tax estimate, bookkeeping figures, a top-up payment or an outstanding submission. We will explain what is needed for the first review.