Who needs to pay Provisional tax?
- Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits
- Profits or losses from a business or trade
- Income or profits arising from an individual being a beneficiary of a trust
- Director’s fees
- Investment income, such as interest and foreign dividends
- Rental income or losses
- Income from royalties
- Annuities
- Pension income
- Certain capital gains
Hence a Provisional Taxpayer is a person who earns income which is not remuneration, an allowance or advance. Or in the event that your Employer is not registered for Employee’s tax (PAYE)
Equally important,refer to article on how to process your PAYE on detail of Income Tax
IT-PT-AE-01-G01 – Guide for Provisional Tax – External Guide
When is Provisional tax due, and how do I submit Provisional Tax?
Therefore the Provisional tax form to use on eFiling, is the IRP6 form. It appears in bi-annual format, e g. 2020-01 (first submission end of Aug 2019), or 2020-02 (second submission end of February 2020)
In order to complete your IRP6 form, you need the following information, as shown below:
How do I register for Provisional Tax?
POL-TM-07 – External Guide Template Provisional Tax
Ultimately you will have to register on eFiling as Provisional taxpayer
Orginasations must click on:
- Orginasations
- Choose Orginasations Tax Types
- Select the box for tax type Provisional Tax (IRP6)
- Enter the tax reference number
- Click on Register button at the bottom
Individuals must click on:
- Home
- Tax Types
- Then Select the box for tax type Provisional Tax (IRP6)
- Then enter the tax reference number
- Finally click on Register button at the bottom
