Why choose Inaura to submit your Provisional Tax
How does Inaura get you a better provisional tax result than anyone else?
We deal exclusively with medical professionals; we understand how the finances of your practice work and we can maximize your deductibles and organizational structures to give you the best provisional tax result.
What do we do differently to give you the best tax result?
As a first step we will audit all your business and private expenses to ensure all possible items have been deducted. Next, we will review your practice structure to ensure you are trading optimally and then implement carefully considered tax structures and deductibles to reduce the amount of tax currently being paid.
When is provisional tax due?
1st provisional tax return for 2021 is due on the 31 August 2020 for individuals that are registered for provisional tax and for companies with a financial year end of end of February 2021.
Please be sure to submit your provisional tax information to SARS before the end of August to avoid penalties and interest and to avoid being flagged as non-compliant.
Who should be registered as a provisional taxpayer?
- Employees earning any other income except salary. I.e. rental income, drawings from a private practice, practice income, locum income, interest income, dividend income, capital gains etc
- Any person that SARS says is registered
- All companies/corporations and closed corporations
You will know if you are registered by either:
- Asking your tax-practitioner
- Phoning SARS on 0800 00 7277
- On your latest tax assessment, you will see a “Y” next to “registered as provisional tax payer”
- If you are a company or closed corporation, you are most definitely registered for provisional tax
What is provisional tax?
Provisional tax is a separate form of tax. It is like PAYE in the sense that you pay tax on income earned before you submit your income tax return. You must submit two returns during the tax year, the 1st one by the end of August and the second by the end of February i.e. For the 2021 income tax period your 1st provisional tax submission is due at the end of August 2020. The second is then due at the end of February 2021.
What we will need to calculate your provisional tax:
If you are a company or business, your expected income, and expenses for the first 6 months of your financial year as well as your expected results for the full 12 months of the financial year.
If you are an individual who earns an income from various source, all supporting documentation and expected income and expenses for the first 6 months of the financial year as well as the expected income and expenses for the full 12 months of the financial year.