First Payment

One half of the total tax in respect of the estimated taxable income for the

year is payable six months before the financial year end.

The estimate of taxable income must not be less than the taxable income reflected on the latest assessment. A lower estimate may be used if justified, subject to the consent of SARS.

Second Payment

The balance of tax due is payable on or before the last day of the financial year end in respect of the estimated taxable income for the year.

As from 1 March 2009 the estimate may not be less than 80% of the taxable income as finally determined including lump sums and capital gains. The basic amount is no longer applicable for the second provisional tax calculation.

If the above requirement is not met, a penalty of 20% of the provisional tax

underpaid may be imposed.

Third Payment

Third provisional payments are only applicable to individuals and trusts with taxable income in excess of R50 000 and companies and close corporations with taxable income in excess of R20 000.

Such payments should be made before 30 September in the case of a

taxpayer with a February year end and within six months of other year ends to avoid interest being charge

Source: Pastel 2009/2010 Tax guide