What is Provisional tax?
A system of paying income tax in advance during the year, in two compulsory instalments, for companies and people with non-salary income.
All companies are provisional taxpayers, as are individuals who earn income other than a salary, such as business, rental or freelance income, unless an exemption applies. Instead of paying all the tax after year-end, you estimate your taxable income and pay in instalments.
The first payment is due within six months of the start of the tax year (31 August for a March start) and the second by the last business day of the year (end of February). An optional third payment can reduce interest. Underestimating or paying late leads to penalties and interest.
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Provisional tax