Do you as an individual need to register for provisional tax?
Any person who receives income (or to whom income accrues) other than a salary, advance or allowance, is a provisional taxpayer and should register for provisional tax at SARS.
Provisional tax is not a separate tax from income tax. It is a method of paying the income tax liability in advance, to ensure that the taxpayer does not remain with a large tax debt on assessment.
You are exempt from being a provisional taxpayer even if you receive income other than a salary, if both of the following applies to you:
- You received income from interest, dividends, rentals and any remuneration from an employer that is not registered for PAYE and the total amount received does not exceed R 30 000 for the year.
- Your taxable income does not exceed the tax threshold for the year.
You do not have to pay any income tax if you earn less than the tax threshold for the year. The tax threshold for the 2019 tax year (1 March 2018 to 28 February 2019) is as follows:
- R 78 150 if you are younger than 65 years.
- R 121 000 if you are 65 years and older.
- R 135 300 if you are 75 years and older.