Tax return warning for over 500,000 taxpayers in South Africa
Provisional taxpayers are warned that the 2026 provisional tax deadline is fast approaching, with the risk of penalties and interest if they fail to meet their obligations.
This warning comes from Tax Consulting SA, which noted that their IRP6 returns and payments are accurate and submitted on time ahead of the final deadline of 28 February 2026.
“As the provisional tax deadline approaches, we are seeing a growing number of taxpayers asking what they need to submit, what has changed, and how they can avoid penalties and interest,” the firm said.
Provisional tax applies to individuals who earn income that is not taxed through the PAYE system.
This includes income from a business, freelance or consulting work, rental income, or certain investments.
Because this income does not go through an employer’s payroll, SARS requires taxpayers to pay their income tax in advance through provisional tax rather than settling the full amount at the end of the tax year.
“If you earn income other than a salary, you need to understand your provisional tax obligations and make sure your IRP6 submissions and payments are correct and on time,” the firm said.
According to SARS data, more than 543,000 provisional taxpayers submitted returns in 2024, and that number continues to grow.
Provisional tax is paid in two stages. The first IRP6 return and payment were due on 30 August 2025 and generally represented half of the estimated total tax liability for the year.
The second and final provisional tax return is due on 28 February 2026 and covers the balance of the estimated tax for the year, taking into account the first payment.
“This February deadline is often confused with the January filing deadline,” Tax Consulting SA warned.
“The 19 January 2026 date applies to the submission of the final annual income tax return, not the payment of provisional tax. Missing the February deadline can have serious consequences.”
Compliance levels remain a concern
Not every taxpayer with extra income is automatically a provisional taxpayer. Natural persons who do not carry on a business are exempt if their total taxable income falls below the annual tax threshold.
For the 2025 tax year, the thresholds are:
- R95,750 for individuals under 65,
- R148,217 for those aged 65 to 75, and
- R165,689 for those aged 75 and older.
“Once your income exceeds these thresholds, provisional tax becomes a requirement, not a choice,” Tax Consulting SA said.
SARS has repeatedly emphasised that provisional tax is not a separate tax. It is simply a method of paying income tax in advance.
“Provisional tax exists to prevent taxpayers from sitting with a large tax bill at assessment,” Tax Consulting SA explained.
“It helps manage cash flow, but it also places responsibility on the taxpayer to submit realistic income estimates.”
If a provisional taxpayer fails to submit a final provisional tax return within four months after the end of the tax year, SARS may treat the estimate as nil or adjust it if it believes the figures are unrealistic.
“Where no estimate is submitted at all, SARS is entitled to determine taxable income based on available information,” Tax Consulting SA added.
“Continued non-compliance can escalate to collection steps such as final demands, third-party appointments, or legal action.”
Missing provisional tax deadlines or submitting incorrect IRP6 returns exposes taxpayers to administrative penalties and interest, which accrue from the due date until the amount is fully paid.
“In some cases, the interest charged can exceed the original provisional tax liability,” Tax Consulting SA warned.
SARS has acknowledged that the number of provisional taxpayers filing returns is increasing, but said compliance levels remain a concern.
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