How to submit a third provisional tax return
Everywhere you look, even on SARS’ website, you will see that you can make a third (voluntary) provisional tax payment by 30 September for February year end entities and six months after the tax year end for other entities.
Why would you want to do this? The tax for the previous year ending February falls due on 30 September even though the tax return does not have to be submitted until after that (end February the following year for companies). Any tax not paid by 30 September is subject to interest charges, currently at 7%, until paid. This interest is not tax deductible.
For this reason, a few companies and individuals want to top up their provisional payments to avoid the interest.
The problem is how to submit a 3rd provisional return?
Try going onto efiling and requesting the return and the only options on offer are 1st and 2nd provisional returns. Hmm!
Here’s the answer –
- There is no third provisional return
- You simply make a third provisional payment
- Calculate the tax for the year
- Deduct any 1st and 2nd provisional payments made
- Request a provisional account statement on efiling
- Check the payment reference number at the bottom of page 1
- It will be something like this – 9340200185P00MMYYYY
- Change the MMYYYY to 032021 (meaning 3rd 2021)
- Go onto your bank
- Navigate to Once-off payment
- Search for a listed beneficiary SARS-PROVISIONAL TAX
- Make the payment using the above reference