Page 3 - P6 Slide Taxation - Lecture Day 6 - Provisional Tax Companies Only

INTRODUCTION (Fourth schedule)

 Why are taxpayers required to make provisional

tax payments?

 To ensure better cash flow for SARS and to facilitate the collection of
taxes

 Ensures that taxpayer wont be able to spend money during the year

and will therefore not have enough money to pay taxes

• What is provisional tax? (4th Schedule)

It is an advance payment of tax determined on an estimated
taxable income for YOA

 On assessment date the taxpayer’s normal tax liability is

reduced by the provisional tax payments made by him for

the yoa