First Provisional Tax Payment for February Year Ends

If your business has a February financial year-end, it’s important to prepare for your first provisional tax payment, which is due by 31 August each year. Provisional tax isn’t a separate tax—it’s a way of paying your income tax liability in advance to avoid a large bill at year-end.

What Is the First Provisional Tax Payment?

The first provisional payment covers the first six months of your tax year (1 March to 31 August). It’s essentially an advance payment of tax based on your expected taxable income for the year.

How to Calculate It

• Estimate your total taxable income for the full year.
• Apply the applicable tax rates for companies or individuals.
• Subtract any rebates or tax credits.
• Pay 50% of this estimated liability to SARS by 31 August.

Why It Matters

• Paying on time helps you avoid penalties and interest.
• It smooths out cash flow by spreading your tax liability over the year.
• Accurate estimates ensure you don’t overpay or underpay SARS.

Quick Tip

Always keep records up to date and consult with a tax advisor if you’re unsure. An accurate estimate will make both the first and second provisional tax payments easier to manage.

Contact PRNC for guidance on managing your provisional tax obligations with confidence.