Provisional Tax on Rental Income

Posted 13 June 2019 under Tax Q&A
Mohamed says:
12 June 2019 at 17:54

My wife and I are South African and we are currently based in East Asia. I work here as a teacher and my wife is not employed. We are married in community of property. So, back at home in Durban, we own two properties, one is residential and the other an office space. We receive rental income of about R6000 and R7500 respectively. Both properties are mortgaged and they are part of a sectional title scheme. Should we register as provisional taxpayers and how would we go about doing this?

This entry was posted in Tax Q&A and tagged , , . Bookmark the permalink.

TaxTim TaxTim says:
13 June 2019 at 8:43

Yes, you would need to register as provisional taxpayers as you would be subject to income tax on the two properties. If the net income, that is the profits from the rental income exceed R79000 per annum for each of you once combined then you need to register and pay tax. Therefore, each individual needs to register as a separate taxpayer and pay tax in their own name. However, this would only be necessary if you take the total profit from the rental property and split it by two, if that amount is greater than R79000 (so each share is greater than R79000) then you would need to register and pay provisional tax.

Please see our guide for What is Provisional Tax? How and when?

Do your Tax Return in 20 minutes or less!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories

Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →