Business
Provisional tax deadline warning for over 500,000 South Africans
A quiet tax deadline that could cost thousands
For hundreds of thousands of South Africans, the end of February is shaping up to be far more stressful than the usual month-end debit orders. A warning has gone out that more than half a million taxpayers are at risk of penalties and interest if they miss the final provisional tax deadline for the 2026 tax year.
The alert comes as tax advisers report a spike in confusion around what exactly needs to be paid and when. According to Tax Consulting SA, many provisional taxpayers are still unsure about their obligations, even though the clock is ticking toward the 28 February 2026 cutoff.
This is not a filing deadline you can safely ignore. Miss it, and the costs can snowball quickly.
Who provisional tax actually applies to
Provisional tax is not aimed at the average salaried employee. It applies to people who earn income that is not taxed through the PAYE system. That includes freelancers, consultants, sole traders, landlords earning rental income, and individuals with certain types of investment income.
Because this money does not run through an employer payroll, the South African Revenue Service requires these taxpayers to pay income tax in advance. The idea is simple. Avoid a massive tax bill at the end of the year by spreading payments across the year.
SARS data shows that more than 543,000 provisional taxpayers submitted returns in 2024, and that number is still climbing as more South Africans turn to side hustles, gig work, and rental income to make ends meet.
The February date many people get wrong
One of the biggest traps provisional taxpayers fall into is confusing deadlines. The final provisional tax payment is due on 28 February 2026. This is completely separate from the 19 January 2026 date, which relates to the submission of the final annual income tax return.
Tax specialists say this mix-up happens every year. Miss the February payment deadline, and interest starts running immediately. In some cases, the interest charged can end up higher than the original tax owed.
Provisional tax is paid in two stages. The first payment, usually about half of the estimated tax for the year, was due on 30 August 2025. The February payment covers the balance, adjusted for what has already been paid.
Not everyone with extra income qualifies
There is still widespread misunderstanding about who must register as a provisional taxpayer. Simply earning extra income does not automatically place you in the category.
Natural persons who do not run a business are exempt if their total taxable income falls below the annual tax threshold. For the 2025 tax year, those thresholds sit at R95,750 for individuals under 65, R148,217 for those aged 65 to 75, and R165,689 for taxpayers older than 75.
Once income pushes past these limits, provisional tax becomes mandatory. It is no longer optional or something to deal with later.
Why SARS is tightening the screws
SARS has repeatedly stressed that provisional tax is not a separate tax. It is simply a payment method. However, it relies heavily on taxpayers submitting realistic income estimates.
If a final provisional return is not submitted within four months after the tax year ends, SARS can treat the estimate as zero or adjust it if it appears unrealistic. Where no estimate is submitted at all, SARS may calculate taxable income using whatever information it has on record.
Continued non-compliance can escalate quickly. Collection steps may include final demands, third-party appointments, or legal action. For many small business owners and freelancers, this can create serious cash flow strain.
Growing side hustles, growing risk
The rise in provisional taxpayers mirrors a broader shift in how South Africans earn money. From Airbnb rentals to freelance contracts and consulting work, more people are earning income outside traditional employment.
On social media, tax practitioners say they are seeing panic posts from freelancers who only realised late in the year that they should have registered as provisional taxpayers. The common regret is the same. I wish I had known sooner.
The reality is that SARS systems are increasingly data-driven. Rental income, investment earnings, and business turnover are easier than ever for the tax authority to flag.
The bottom line before 28 February
If you earn income outside a monthly salary, now is the time to double-check whether provisional tax applies to you. Submitting accurate IRP6 returns and making payments on time is the only way to avoid penalties and compounding interest.
With more than half a million South Africans already in the provisional tax net, this February deadline is one many cannot afford to miss.
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Source: Business Tech
Featured Image: Daily Investor
