2025 Tax Season

Are You a Provisional or Non-provisional Tax Payer?

You Are a Provisional Taxpayer If:

• You earn taxable income, other than a salary, above R30 000, such as:
  • Freelance or consulting income
  • Rental income
  • Investment income (interest, dividends, etc.)
• You run your own business as a sole proprietor or in a partnership.
• You receive income from an employer not registered for PAYE (e.g. some foreign missions or informal employers).
• You are a company or trust—these are automatically considered provisional taxpayers.
• SARS has notified you in writing that you are a provisional taxpayer.

You’ll need to submit IRP6 returns twice a year (August and February), estimating your taxable income and paying tax in advance.

You Are Not a Provisional Taxpayer If:

• You only earn a salary from a registered employer who deducts PAYE.
• You do not run a business, and your total non-salary income (like interest, dividends, or rental income) is:
  • R30,000 or less for the year, and
  • Your total taxable income is below the annual tax threshold:
    • R95,750 (under 65)
    • R148,217 (65 to 74)
    • R165,689 (75 and older)

In this case, you only need to submit your annual ITR12 tax return, not IRP6 forms.

What is the meaning of taxable income?

Taxable income is the amount of which tax will be calculated on.

Formula for taxable income = Gross Income – Exempt income – Allowable Deductions + Taxable Capital Gains.

Taxable Capital Gains are the taxable portion of the profit earned from selling an asset e.g. the sale of your house.