Remind me, who is a provisional taxpayer?
As explained in the article about provisional and non-provisional taxpayers, a provisional taxpayer is:
“A provisional taxpayer is someone who receives any income over and above their normal salary. This could be rental income, ad hoc income, dividends, or interest above R30 000 per year.”– Smith and Rossi
This type of taxpayer submits 3 tax returns. The first in February, the second in August, and the third in October. Something to note here, is that the third tax return isn’t a mandatory one, it is only if the taxpayer has made an underestimation on their second return.
Provisional tax returns can be complicated and usually are a case-by-case process. It is best to consult an accountant if you are a provisional taxpayer to make sure you submit the correct documentation.
If you want to do it yourself, here is a list of the documents that you need to submit in some provisional tax return cases.
Case 1: You are employed and receive rental income
If you are employed normally, have PAYE deducted from your salary but you get an additional amount of money through rental income, you need to submit the same documents as a non-provisional taxpayer as well as all the documentation pertaining to rental income and expenses.
Case 2: You run your own business as a sole proprietor
If you run your business as a sole proprietor (if you are trading in your own name), you only need to submit the documentation of income and expenses relating to trade.
Although these are the most common cases of provisional taxpayers, there are many more possible scenarios for a provisional taxpayer and document requirements vary from case to case.
If you need any help
If you have any questions, need help understanding the ins and outs of tax, or are looking to have someone else handle your taxes entirely, contact us at firstname.lastname@example.org, via our website, or on social media.