{
  "id": 16899155,
  "title": "Here are the proposed changes to provisional tax and what they mean for you",
  "url": "https://urgent.news/2026/10/28/here-are-the-proposed-changes-to-provisional-tax-and-what-they-mean",
  "topic": "world",
  "section": "World",
  "published": "2026-10-28T12:37:22.000Z",
  "source": {
    "name": "The Citizen",
    "slug": "the-citizen",
    "url": "https://www.citizen.co.za/business/here-are-the-proposed-changes-to-provisional-tax-and-what-they-mean-for-you/"
  },
  "original_language": "en",
  "account": "The Tax Administration Laws Amendment Bill, 2026, set forth in Parliament, outlines two proposed changes to provisional tax penalties. Provisional tax, paid in advance in two installments throughout the assessment year, is based on an estimate of expected earnings. Provisional taxpayers, typically those with non-salary income like rental income or business earnings, are affected by these changes.\n\nThe first proposed amendment raises the underestimation penalty threshold for provisional taxpayers. Currently, if a provisional taxpayer's actual taxable income exceeds R1 million for the year, they must estimate at least 80% of their actual income for the second tax payment to avoid penalties. The amendment proposes to raise this threshold to R1.8 million, effective for the 2027 year of assessment. This change aims to reduce the burden on taxpayers by allowing them to rely on their previous assessment for their basic income figure, thus avoiding the need for accurate estimates.\n\nThe second proposed amendment addresses late payment of the second provisional tax payment. If a taxpayer fails to pay the required amount within one month of the payment deadline, their last estimate will be treated as the aggregate payments, PAYE deducted, and qualifying foreign tax amounts. For instance, a company with a year of assessment ending on 28 February 2027, expecting R10 million in taxable income, would need to pay R2.7 million in tax. If the company fails to pay the second installment within one month of its due date, the underestimation penalty will be replaced with a deemed estimate equal to the total tax amounts. Additionally, penalties for late payments and underestimation are now percentage-based, and grounds for remission of these penalties exist under specific circumstances outlined in the Tax Administration Act.",
  "summary": "The explanatory summary of the Tax Administration Laws Amendment Bill, 2026 was tabled before parliament on 21 October 2026, alongside the MTBPS.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}