Page 4 - Provissional Tax For Companies

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 4