31 August 2017 marks the deadline for the submission of the 1st Provisional Tax Return (IRP6) for all provisional taxpayers with February 2018 year-ends and the submission of the 2nd IRP6 return for those with August 2017 year-ends. With most taxpayers (most companies / close corporations and all individuals / trusts) having February year-ends, the number of IRP6’s processed by our firm during August is substantial.
Should one of the criteria above affect you, you should expect correspondence from our office towards the end of July or start of August.
Furthermore, it is worth mentioning that the South African Revenue Service (SARS) issued an updated Interpretation Note (Interpretation Note No 1 – Issue 2) on provisional tax. SARS is applying a stricter approach to IRP6 returns and we are experiencing an increase in IRP6 audits, even where the figures are based on the prior year’s assessment (i.e. the basic amount). Although it is still common practice, especially for the first provisional tax period, to use these basic amounts, we recommend that you contact your relationship director if your income has changed materially from the previous year.
If you are unsure whether you should pay provisional tax, you can also contact your relationship director, or Jaco van Straaten at firstname.lastname@example.org.
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