Managing your taxes as a business owner is crucial for staying compliant with the South African Revenue Service (SARS). If you earn income outside of a salary, you may be required to register as a provisional taxpayer and ensure your business is correctly linked on SARS eFiling. The good news is that you can complete this entire process online, without visiting a SARS branch.
This guide will walk you through the step-by-step process to register as a provisional taxpayer and add your business to SARS eFiling so you can manage your tax affairs with ease.
Who Needs to Register as a Provisional Taxpayer?
Provisional tax is a system designed to help individuals and businesses pay their tax liabilities in advance, preventing large lump-sum payments at the end of the tax year. You are required to register as a provisional taxpayer if you fall into any of these categories:
✅ Freelancers and consultants earning income directly from clients.
✅ Small business owners and entrepreneurs operating as sole proprietors.
✅ Company directors who earn income outside of a salary.
✅ Rental property owners earning rental income
✅ Investors and traders earning income from dividends, interest, or trading profits
If you fall into any of these categories, you must register for provisional tax to submit advance tax payments twice a year.(if your only source of income is salary with PAYE, you do not need to register as a provisional taxpayer.)
How to Register as a Provisional Taxpayer on SARS eFiling
To register as a provisional taxpayer, follow these steps on SARS eFiling:
Visit SARS eFiling: Go to www.sarsefiling.co.za and log in to your existing account. If you do not have an account, register as a new user.
Navigate to Tax Types: After logging in, select "Tax Types" from the main menu.
Select Income Tax: Click "Manage Tax Types" and ensure that "Income Tax" is activated.
Indicate Provisional Taxpayer Status: If your income falls under provisional tax requirements, select "Yes" when asked about your taxpayer status.
Submit Your Application: Follow the prompts to complete the registration. SARS may require additional verification, such as proof of income sources.
Await Confirmation: Once approved, SARS will issue you an income tax reference number confirming your provisional taxpayer status.
You will now see the Provisional Tax (IRP6) option in your SARS eFiling profile!
How to Add Your Business to SARS eFiling
If you are operating a registered business (such as a company, sole proprietorship, or partnership), you must add it to SARS eFiling so you can manage VAT, PAYE, and business tax returns online.
Registering as a Tax Representative
Before adding your business to your SARS eFiling profile, ensure that you are registered as the Tax Representative for your company. If you are not registered as a representative, you will not be able to link your business to your profile. Head over to Register as a Tax Representative for more detailed guide on how to register.
Adding Your Business to SARS eFiling
Log into SARS eFiling: Use your existing credentials.
Go to "Organizations" or "Taxpayer Details": Depending on your profile type, find the section where business entities are managed.
Add a Taxpayer: Select "Add New Taxpayer" and enter your company’s details, including registration number and tax reference number.
Request Tax Type Activation: Ensure that Corporate Income Tax (CIT), VAT, and PAYE (if applicable) are activated under "Manage Tax Types."
Link Your Business to Your Profile: Once submitted, SARS will process the request, and your business will appear under your profile for tax management.
How to Submit Provisional Tax Returns Online
As a provisional taxpayer, you need to submit tax returns twice a year using SARS eFiling:
📅 1st Provisional Tax Return (IRP6): Due by 31 August
📅 2nd Provisional Tax Return (IRP6): Due by 28/29 February
To submit your return:
Log in to SARS eFiling.
Go to "Returns" > "Provisional Tax (IRP6)" under the "Returns Issued" section.
Select the applicable period. SARS issues IRP6 forms for the two provisional tax periods:
First payment: Due in August
Second payment: Due in February
Enter estimated taxable income. SARS requires you to estimate your total income and expenses for the tax year.
Review calculated tax liability. The system automatically calculates your estimated tax amount.
Submit the IRP6 form. Ensure all details are accurate before submission.
Make payment. If you owe tax, follow the SARS eFiling payment instructions to settle your balance before the deadline.
Important Deadlines & Compliance Tips
Staying compliant with SARS is essential to avoid penalties and interest charges.
Here are key deadlines and best practices:
✅ Provisional Tax Deadlines:
First payment: 31 August
Second payment: 28/29 February
Optional third payment: 30 September (For underpayments)
✅ Keep accurate financial records. Maintain invoices, receipts, and income statements
to justify your estimated taxable income.
✅ Review SARS notifications regularly. Ensure you do not miss critical updates or
changes in tax laws.
✅ Use a tax professional if needed. If your tax situation is complex, consulting a
professional can help you optimize your tax obligations.
Common Mistakes to Avoid:
❌ Not registering on time. If SARS identifies you as a provisional taxpayer and you
haven’t registered, you may face penalties.
❌ Incorrect income estimates. Underestimating your income can result in unexpected
tax liabilities later.
❌ Missing deadlines. Late submissions may lead to interest charges and penalties.
Conclusion
Handling your provisional tax registration and business tax compliance online through SARS eFiling is a game-changer for entrepreneurs and freelancers. By following this guide, you can complete the entire process without visiting a SARS branch, ensuring efficiency and compliance. Take control of your tax obligations today and focus on growing your business with peace of mind.
🚀 Get started today by logging into SARS eFiling and registering your tax details! For
more tax-related insights and business tips, stay tuned to our blog!
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