Changes to the Provisional Tax Process: What You Should Know

If you are a provisional taxpayer, please note that SARS has introduced a few changes in the way in which you will fill out your IRP6. These changes came into effect on the 28th of June 2010.

  • The first change is that you will no longer receive your IRP6 form in the mail as SARS will no longer be issuing these printed IRP6 returns. You now have the choice of registering for eFiling, calling the SARS Contact Centre or visiting your nearest South African Revenue Services branch.
  • A new IRP6 return has been introduced, which is available in both Adobe Reader and Adobe Flash Player. The flash player format offers a fantastic performance and user experience. You may wonder how one can mention fantastic experience and tax return in the same paragraph, but when you see that the document automatically performs tax and rebate calculations and includes built-in upfront field validations when filing as an individual, you will understand why!
  • From now on, any taxpayer can request an IRP6 return – even those who are not yet registered as provisional taxpayers.
  • From now on, you will only need to submit your IRP6 in the event that you are in fact liable for provisional tax. If not, you will not be required to make a submission.  But do be warned that if at the time of assessment it is determined that you were actually liable for provisional tax, penalties and interest may be levied.
  • SARS has also introduced a new Provisional Tax Statement of Account, geared towards helping you with managing your tax affairs.

Existing IRP6 returns on eFiling

For companies with financial year ends of December, January, June and July with IRP6 returns due, the IRP6 returns will be treated as follows on eFiling:

  • If the old format IRP6 has already been issued to your company on eFiling, the return can still be captured and filed. If you prefer, you can simply ignore the old format IRP6 and request the new format instead.
  • If the old format IRP6 hasn’t been issued, then you must ask for a new one.

Note that for individuals and other organisations with financial year ends not specified above, any old format IRP6 return that has not yet been submitted to SARS will be removed from their eFiling profiles in due course – even those that have been started and saved.

If you have posted an old format IRP6 to SARS

From the 28th of June 2010, any old format IRP6 returns posted to SARS will be rejected for periods before 2009 and periods from January 2011 onwards.

Old format IRP6 returns posted to SARS for periods from January 2009 until February 2010 will be only be accepted until 1 August 2010, after which time all old format IRP6 returns received for these periods will be rejected.

In these instances, you will have to request and submit a new IRP6.

“The changes to the provisional tax process have now shifted the onus from SARS to the taxpayer to ensure they meet all the tax requirements” says Pieter Carstens of 1st Contact’s SA Tax Division.  “This adds enormously to the taxpayer’s responsibilities and I would strongly recommend that you speak to a tax advisor if you are unsure of your tax requirements.”

We hope this has been of use to you. If you have any questions at all relating to SARS, provisional tax or the South African tax system, please contact the 1st Contact SA Tax office on 021 657 2190 or visit www.1stcontactsatax.com.

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