Provisional taxpayers constitute:
- Anyone who earns income from a source other than a formal job
- All companies
- Those who earn more than R20 000 in taxable income on interest or dividends on investments. It can also be income from renting properties or running a private business. All of this qualifies for provisional Tax.
Those who are not provisional taxpayers include:
- Those who are younger than 65 on the last day of the tax year and don't have any business income. But only if your taxable income is less than the threshold per year and if your taxable income from interest, dividends and rent from properties is less than R20 000 per year.
- Those who are 65 or older on the last day of the tax year and their taxable income is less than R120 000 for the year. Also, the income mustn't be in the form of business income and it mustn't come from any other form other than remuneration, interest, property rental or dividends.
Because some are no longer provisional taxpayers, their remuneration now falls under PAYE.