Provisional tax is not a separate tax, but merely a system that requires taxpayers to provide for their final tax liability, in advance. The objective of provisional tax is to help taxpayers meet their liabilities in the form of at least two payments, instead of a single large amount on assessment.

This webinar provides an update of the basic mechanics of provisional tax for companies, as well as a comprehensive discussion on some of the more complex areas that need to be considered and applied, including specific discussions on the current Covid-19 provisional tax relief measures.

We unpack the following in detail:

1)        What is provisional tax? – understanding the purpose of provisional tax.

2)        Who is a provisional taxpayer? – know who should register as a provisional taxpayer.

3)        How is provisional tax calculated? – working through the basic framework for calculating the provisional tax, dealing specific with:

                     i.            Basic amount

                    ii.            Estimates of taxable income

                  iii.            Foreign tax rebates

                  iv.            Par 23: Provisional tax payments for companies

4)        When must provisional tax be paid? – know when provisional tax is payable.

5)        What are the deferral of payment criteria and agreement terms? – know when an instalment payment agreement can be entered into.

6)        What penalties and interest are applicable per period? – discussing the late payment, late submission and underpayment penalties as well as the applicable interest sections.

7)        What are the current Covid-19 provisional tax relief measures? – available to qualifying tax compliant taxpayers.

8)        How do I complete the IRP6 on SARS e-filing? – a systematically approach to the completion will be followed.

Practical examples are incorporated throughout the session, explaining all the key principles.

The webinar will contribute to 2 hours CPD/CPE