Who is a Provisional Taxpayer (SARS)?

Individuals who only earn a salary/remuneration on which PAYE is deducted and have no other income, are non-provisional taxpayers and don't have to worry about filling provisional tax returns. Non-provisional taxpayers make their contributions to SARS via PAYE deducted from their salary and only have to submit an income tax return (ITR12) for each tax year.

Provisional taxpayers are individuals who earn other income on which no income tax/PAYE has been deducted/withheld.

If you earn any of the following income, you may be a provisional taxpayer:

  • Rental Income

  • Interest and Investment Income

  • Freelance/business income

  • Trading in shares or crypto

  • Other taxable income

Exceptions from being a provisional taxpayer include individuals who do not earn any income from carrying on any business, if in that relevant year of assessment:

  • Taxable income does not exceed the tax threshold (for 2023 tax year: for taxpayers below age of 65 – R91,250; age 65 to below 75 – R141,250 and age 75 and over – R157,900); OR

  • The taxable income from interest, dividends, foreign dividends, rental from letting fixed property and remuneration from an employer that is not registered for employees’ tax does not exceed R30 000