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Payment Periods

Posted 2 December 2015 under Tax Questions



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Mike says:
19 November 2015 at 8:35

With regard to Provisional Tax:When SARS refers to the periods 2016-01 and 2016-02 (see below) is SARS referring to the months i. E 2016-01 = January and 2016-02 as being February or are they referring to the two payment periods for Provisional Tax being February and August? Could you please explain. 5. 3 Provisional Tax Returns can only be requested for periods that fall within:
%u201A The current period
%u201A The current periods minus two periods
%u0192 Example: if the current period is 2016-01 and 2016-02, IRP6 forms can be requested for the periods 2015-02 and 2015-01. %u201A The current periods plus one period
%u0192 Example: if the current period is 2016-01 and 2016-02, IRP6 forms can be requested for the periods and 2017-01.

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TaxTimTaxTim says:
19 November 2015 at 11:30

2016 -01 means the first period of the 2016 tax year which ended in August 2015 and the 2016-02 means the second period of the 2016 tax year which will end Feb 2016.


Mike says:
19 November 2015 at 12:06

If I go up onto your website WHEN DO I HAVE TO PAY - it seems that the first period for 2016 would be the end of August 2016 and the second period being the end of February 2017 - could you please confirm why your dates vary?

many thanks for your previous reply.


TaxTimTaxTim says:
19 November 2015 at 12:25

If you look at What is Provisional Tax? How and when? then it shows that in the 2015 calendar year the 2016 tax year 1st return is due in August 2015.


Mike says:
30 November 2015 at 13:13

With regard to the following: 2016 -01 means the first period of the 2016 tax year which ended in August 2015 and the 2016-02 means the second period of the 2016 tax year which will end Feb 2016.

Based on the above this means that tax for the 2016 period is being paid advance as I see it i.e. the provisional payments take place in Aug 2015 and Feb 2016. The implication of this is that I do not really know what I will make for the rest of the year. I will really only know what I actually need to pay in tax on at the end of 2106. Could you please explain the logic to this and how and when does one makes up the difference of what actually earned which one will only know at the end of 2016?

many thanks


TaxTimTaxTim says:
1 December 2015 at 8:37

The provisional tax payments are based on your estimated earnings for the year. You could always use the prior year as a starting point and then make an inflationary adjustment. At the end of 2016, if you calculate that you have underpaid tax, you can always make a third top up payment within 7 months of the year end i.e 30 September 2016. You will then need to file your 2016 tax return by 31 January 2017 and here SARS will assess the exact tax due and will take your provisional payments into account to arrive at the difference (either refundable to you or payable to SARS).

Please Register for TaxTim and let us assist you with your provisional returns and final tax return submission to SARS.


Mike says:
1 December 2015 at 12:07

thank you!


TaxTimTaxTim says:
2 December 2015 at 15:41

Only a pleasure!


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