A reminder: provisional taxpayers have until Monday, 23 January, to file their returns.
Any natural person, other than a salary or remuneration earner, who receives income on which no income tax has been deducted/withheld is a provisional taxpayer. They need to declare their total estimated taxable income on their provisional tax returns (IRP6) and pay the applicable tax.
If you earn any of the following income, you may be a provisional taxpayer even if you also earn a salary:
- Rental income;
- Interest and investment income;
- Freelance/business income; or
- Other taxable income.
If your employer does not withhold PAYE on your salary because, for example, you are employed by a foreign employer, you are also a provisional taxpayer.
If you earn income from freelancing or running your own business and your total taxable income (income less expenses) is above the tax threshold (see below), you are a provisional taxpayer.
If you do not earn income from running your own business, but your total taxable income from interest, dividends and rental income is greater than R30 000 a year, and your total taxable income is greater than the tax threshold, you will be a provisional taxpayer.
Companies are automatically regarded as provisional taxpayers.
In terms of the Income Tax Act, other exclusions from the definition of a provisional taxpayer are:
-
- Approved public benefit organisations or recreational clubs that have been approved by the commissioner of the South African Revenue Service;
- Body corporates, share block companies or certain associations of persons that are exempt from tax;
- Non-resident owner or charterer of ships or aircraft;
- Natural person who does not earn any income from carrying on any business – provided that person’s taxable income will not be more than the tax threshold;
- Small business funding entities;
- Deceased estates; or
- Any association that has been approved by the commissioner.
Tax thresholds
2023 tax year (1 March 2022 to 28 February 2023)
Under 65: R91 250
65 and older: R141 250
75 and older: R157 900
2022 tax year (1 March 2021 to 28 February 2022)
Under 65: R87 300
65 and older: R135 150
75 and older: R151 100
