South African businesses and provisional taxpayers need to take note of an important upcoming SARS deadline.
The first provisional tax return, commonly known as the IRP6, for the 2027 year of assessment is due on 31 August 2026 for taxpayers whose year of assessment runs from 1 March 2026 to 28 February 2027.
SARS confirms that the first provisional tax payment must generally be made within six months from the beginning of the year of assessment. Where the year starts on 1 March, the first provisional period ends on 31 August. SARS’s 2026 calendar specifically lists 31 August 2026 for both Corporate Income Tax and Personal Income Tax provisional tax payments.
For businesses and individuals falling within the provisional tax system, this is therefore a deadline that should not be ignored.
What Is an IRP6 Provisional Tax Return?
The IRP6 is the return used to declare an estimate of taxable income for provisional tax purposes.
Provisional tax is not an additional or separate tax charged on businesses or individuals. Instead, it is a mechanism through which taxpayers pay their normal income tax liability in advance during the tax year.
SARS describes provisional tax as an advance payment toward a taxpayer’s normal income tax liability. Provisional taxpayers generally make two compulsory payments during the year, with the option of making a third top-up payment after year-end where necessary.
The objective is relatively straightforward: instead of waiting until an annual income tax assessment produces one large tax liability, taxpayers gradually settle their expected income tax during the year.
For a taxpayer with a 28 February 2027 year-end, the important periods are:
- First provisional period: 31 August 2026
- Second provisional period: end of February 2027
- Third/top-up payment: voluntary and generally available after year-end where additional tax needs to be settled
SARS confirms that the first payment falls six months into the year of assessment, while the second payment is due at the end of the year of assessment.
Who Must Submit an IRP6?
Understanding whether you are a provisional taxpayer is important because the rules differ between companies and individuals.
Companies
SARS states that every company, with certain specific exceptions, is required to submit provisional tax returns. The exceptions include certain body corporates, share block companies and Public Benefit Companies.
This means the requirement commonly applies to:
- Private companies – Pty Ltd
- Close corporations – CC
- Small Business Corporations
- Trading companies
- Professional businesses
- Consulting companies
- Investment companies
- Other companies registered for Corporate Income Tax
Importantly, businesses should not assume that having little or no trading activity automatically removes their filing obligations.
SARS includes dormant companies within the corporate income tax framework and states that companies, other than specified excluded entities, are required to submit provisional tax returns.
Where the provisional tax calculation results in no tax payable, the return may still need to be submitted showing a nil amount. SARS’s current provisional tax guide specifically states that provisional taxpayers are required to request and submit the first and second IRP6 returns even where the provisional tax calculation results in nil tax payable.
Individuals
The position for individuals is different.
Being an employee does not automatically make someone a provisional taxpayer. Provisional tax generally becomes relevant where an individual earns income other than normal remuneration subject to PAYE, carries on a business, or receives remuneration from an employer that is not registered for employees’ tax.
SARS defines a provisional taxpayer as including a person, other than a company, who earns income that is not remuneration or who earns remuneration from an employer that is not registered for employees’ tax. Certain exclusions and thresholds also apply.
Individuals who may therefore need to consider provisional tax include:
- Freelancers
- Consultants
- Sole proprietors
- Independent professionals
- Individuals operating businesses
- Certain landlords earning rental income
- People earning substantial income outside their normal salary
Directors of private companies are not automatically provisional taxpayers simply because they are directors. SARS specifically notes that directors and members of close corporations are not automatically regarded as provisional taxpayers unless their circumstances otherwise bring them within the provisional tax rules.
How Is the First Provisional Tax Payment Calculated?
One of the most common misunderstandings about the IRP6 is that taxpayers are simply declaring the income earned during the first six months.
That is not quite how it works.
The taxpayer is generally required to estimate taxable income for the full year of assessment.
For the first provisional period, the tax liability is then calculated using the estimated annual taxable income. Broadly, the first payment represents approximately half of the estimated annual tax liability after taking into consideration applicable PAYE, foreign tax credits, rebates and other relevant credits depending on the taxpayer.
Companies are similarly required to submit an estimate of the total taxable income expected for the entire year of assessment.
This is why having accurate, current accounting records becomes critical.
If your accountant only starts looking at your financial information a few days before the provisional tax deadline, determining a reasonable full-year estimate can become unnecessarily difficult.
Don’t Simply Copy Last Year’s Numbers
A provisional tax estimate should reflect what is reasonably expected to happen during the current financial year.
Your business may have changed significantly since the previous year.
For example:
Your revenue may have increased by 40%.
You may have opened a new branch.
Your operating costs may have increased.
You may have purchased qualifying assets.
A major contract may have been won or lost.
Profit margins may have changed.
Simply taking last year’s taxable income and submitting the same number without considering current performance can therefore produce a poor estimate.
SARS may ask a provisional taxpayer to justify an estimate or provide information regarding income and expenditure. Where SARS is dissatisfied with an estimate, it may increase that estimate to an amount it considers reasonable.
Businesses should therefore base their provisional tax calculations on up-to-date management accounts, bookkeeping records and realistic forecasts.
Can You Submit a Nil IRP6?
Yes, an IRP6 may result in a nil payment where the underlying tax calculation genuinely produces no provisional tax liability.
However, “nil” should not simply be used as a convenient way of postponing tax.
SARS requires provisional taxpayers to submit estimates of their taxable income, and it has the power to determine an estimate where a taxpayer fails to submit one. SARS may also increase an estimate where it considers the taxpayer’s estimate unreasonable.
A business that is genuinely loss-making, dormant or expecting no taxable income may have legitimate grounds for a nil provisional tax payment.
The key is having financial records capable of supporting that position.
What Happens If You Miss the 31 August 2026 IRP6 Deadline?
Missing the provisional tax payment deadline can become expensive.
1. 10% Late-Payment Penalty
SARS’s current provisional tax guide provides for a 10% penalty on late provisional tax payments for the first and second provisional periods.
For example, if R100,000 in provisional tax should have been paid by the deadline, a 10% late-payment penalty could add R10,000 before interest is considered.
2. Interest
Interest can also become payable on late provisional tax payments at the applicable prescribed rate. SARS notes that the prescribed interest rate may change from time to time.
The longer an outstanding tax liability remains unpaid, the more expensive non-compliance can become.
3. Underestimation Penalties
There is also an important distinction between paying late and underestimating taxable income.
Under certain circumstances, SARS may impose penalties where the taxable income declared in the provisional tax process is materially lower than the taxpayer’s actual taxable income.
The rules differ depending on the level of taxable income and are particularly relevant when preparing the second provisional tax estimate. SARS’s guide sets out potential 20% penalty calculations in specified cases of underestimation.
This makes accurate forecasting important throughout the year, not merely when the first IRP6 becomes due.
What Should Businesses Do Before 31 August 2026?
Businesses with a 28 February financial year-end should ideally begin preparing well before the final week of August.
Before filing, ensure that:
- Your bookkeeping is updated to the latest available month.
- Bank accounts have been reconciled.
- Sales and other income have been correctly recorded.
- Business expenses have been captured.
- Payroll information is complete.
- Fixed-asset purchases are properly recorded.
- Current profitability is reviewed.
- Expected income and expenses for the remainder of the year are forecast.
- Your taxable income estimate is reviewed by your accountant or tax practitioner.
- The IRP6 is submitted and any required payment reaches SARS by the deadline.
SARS allows provisional taxpayers to request and submit their IRP6 through eFiling.
Waiting until 31 August creates unnecessary risk, particularly if there are missing records, unreconciled transactions, eFiling access problems or questions about the calculation.
IRP6 Deadline 2026: Don’t Leave It Until the Last Minute
For companies and qualifying individual provisional taxpayers whose year of assessment ends on 28 February 2027, the first provisional tax deadline is 31 August 2026.
The IRP6 should not simply be treated as another compliance form.
It is an opportunity to understand what your business has earned, assess its expected profitability for the year, estimate its tax exposure and plan cash flow accordingly.
Good tax management starts with good financial records.
Businesses that maintain accurate bookkeeping throughout the year are in a much stronger position to calculate provisional tax correctly, identify potential tax liabilities early and avoid unpleasant surprises when annual income tax becomes due.
If your accounting records are behind or you are uncertain whether you need to submit an IRP6, speak to your accountant or registered tax practitioner before 31 August 2026.
Getting the numbers right before the deadline is generally far cheaper than dealing with penalties, interest and corrections afterwards.
Disclaimer: This article provides general information and should not be regarded as tax advice for a specific taxpayer. Provisional tax obligations depend on the taxpayer’s individual circumstances. Where necessary, obtain advice from a registered tax practitioner or consult the latest guidance issued by SARS.
