My husband owns a company and has been instructed by his Financial Service Provider to make 2 separate payments for Provisional Tax, One payment for Personal Provisional Tax & Business Provisional Tax, Why are we liable to so make so many payments to SARS. As it is we pay Tax every 2 months as well as PAYE?
Those are the requirements as per Income Tax law. The individual and company are treated as two separate taxpayers for tax purposes and thus each require their own return. The provisional tax is just an upfront tax payment of the expected amount to be paid at the end of the financial year. The PAYE is not tax, but a prepayment for the tax of your employee's so this does not actually affect your overall numbers and the 2 month payments are for VAT.
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