Provisional Tax – legislation changes to provisional tax returns
From 1 March 2009 onwards, the Second Provisional tax returns will be based on the estimated taxable income for the current tax year – you may no longer use the last assessment per SARS. Should the final taxable income for the applicable tax year exceed this estimate by more than 20%, a penalty will be levied by SARS for the under-estimation of provisional tax.
It is therefore business critical to maintain up to date financial information to reliably estimate the taxable income in any tax year. Our monthly accounting team is able to assist you with this process. Kindly contact Fatima or Danie at our offices to discover how we can assist you to avoid unnecessary SARS costs.