For many taxpayers, the provisional tax cycle can feel like a moving target. While most are familiar with the first and second provisional tax payments in August and February, there is also an important third ‘top-up’ payment option that falls due by 30 September each year.
What is the third provisional tax payment?
The third payment is technically voluntary, but it provides a valuable opportunity to ‘top up’ any shortfall from your first and second provisional payments before SARS begins charging interest and penalties. This means if your actual taxable income for the year is higher than your estimates, you can settle the difference by 30 September to avoid additional costs.
Why it matters
– Avoids interest (section 89quat interest): SARS charges interest on underpayments from 1 October if your tax bill is not settled.
– Reduces risk of penalties: Especially important if your estimates were conservative in February.
– Peace of mind: You enter the new tax year with your obligations settled.
Who should consider it?
– Individuals, trusts, or companies with variable or uncertain income (consultants, commission earners, businesses with seasonal cycles).
– Taxpayers who had unexpected windfalls or higher-than-expected earnings after February.
What to do now
1. Review your actual taxable income for the past year.
2. Compare it against the tax you’ve already paid provisionally.
3. If there’s a shortfall, make a top-up payment to SARS by 30 September.
At Meerkat Accountants, we help clients calculate whether a top-up makes sense and handle the admin to keep SARS happy and your cash flow balanced.
Deadline: 30 September 2025 – Don’t leave it too late — reach out if you need assistance with your top-up calculation.