COVID 19 TAX RELIEF – PROVISIONAL TAX

The following measures are aimed in assisting small to medium sized businesses (individuals, companies, and trusts (including micro-businesses) to alleviate cash flow problems for compliant provisional taxpayers:

  • Deferral of a portion of the payment of the first and second provisional tax liability to SARS, without SARS imposing penalties and interest for the late payment of the deferred amount;
  • The first provisional tax payments due from 1 April 2020 to 30 September 2020 will be based on 15 percent of the estimated total tax liability, while the second provisional tax payments due from 1 April 2020 to 31 March 2021 will be based on 65 percent of the estimated total tax liability (after deducting the 15% payment amount received from the 1st period into account);
  • Provisional taxpayers with deferred payments will be required to pay the remaining 35% tax liability when making the third provisional tax payment in order to avoid interest charges on assessment.

For a summary on the various tax relief measures please read more on;

https://www.sars.gov.za/Media/Pages/Tax-Relief-measures.aspx