Provisional Tax (IRP6)

IRP6 Provisional Tax South Africa

Provisional tax is the SARS rhythm most companies forget about.

Twice a year, you make an estimated payment against the year ahead. Done sensibly, it spreads the tax burden and keeps SARS happy. Done badly, the second IRP6 underestimates the year, and SARS can hit the company with an underestimation penalty on top of the assessment.

Most directors only learn how the IRP6 system works after they have been penalised once.

The penalty for getting it wrong is steeper than the cost of getting it right.

Express Shelf Company prepares and submits IRP6 provisional tax returns for South African (Pty) Ltd companies, Inc companies, NPCs, and Close Corporations.

What Is Provisional Tax?

Provisional tax is the SARS mechanism for collecting income tax across the year, instead of waiting until the ITR14 at year-end.

Companies are required to make estimated tax payments twice a year, with a third optional top-up payment.

A provisional tax cycle for a typical company includes:

• First IRP6, due in the middle of the financial year, based on estimated taxable income for the year
• Second IRP6, due at the end of the financial year, with a final estimate that should closely match the eventual ITR14
• Optional third payment, a voluntary top-up before the ITR14, used to avoid interest if the second IRP6 underestimated the year

The ITR14 reconciles all of it. Underestimating in the second IRP6 can lead to an underestimation penalty.

When You Need to File an IRP6

You need to file IRP6 returns if:

• Your company is registered for income tax with SARS
• You expect taxable income for the year
• A first or second IRP6 deadline is approaching
• You have outstanding IRP6 returns from previous periods
• You want to avoid underestimation penalties at the next ITR14

Dormant companies may be exempt from provisional tax in some circumstances. We confirm the position before filing nil.

What Is Included With the IRP6 Service?

Express Shelf Company prepares and submits the IRP6 from start to finish.

Includes:

• Review of management accounts or projections to estimate taxable income
• IRP6 calculation in line with SARS rules
• Submission via SARS eFiling
• Payment instruction generated for SARS payment
• Catch-up filings for outstanding prior periods where needed
• Guidance on whether a third top-up payment makes sense before the ITR14
• Confirmation of submission returned to your inbox

How It Works

We have made this as effortless as possible. The whole filing is handled on your behalf.

Step 1: Tell Us Where the Year Is Going

A short conversation helps us understand how the year has performed and what taxable income is expected.

You can send management accounts, a trial balance, or projection figures.

Step 2: We Calculate and Prepare the IRP6

Express Shelf Company calculates the IRP6 in line with SARS rules and prepares the submission.

The estimate is based on actual management figures where available, not guesswork.

Step 3: We Submit Through eFiling

The IRP6 is lodged through SARS eFiling.

The payment instruction is issued, so you know what must be paid and by when.

Step 4: SARS Confirms

Submission is confirmed. The provisional tax payment can be scheduled, and the company’s tax cycle stays on track.

Why Use Express Shelf Company for IRP6 Submissions?

Provisional Tax, IRP6, is the filing where good intentions and rough estimates can cost real money.

SARS expects the second IRP6 estimate to be close to the actual taxable income for the year. Underestimate beyond the allowed threshold and a penalty may apply.

Express Shelf Company gives you:

• Estimates supported by actual management figures, not guesses
• Calculations prepared against SARS rules
• Allowances and credits considered where applicable
• Catch-up submissions for outstanding IRP6 returns
• Guidance on the third top-up payment where it makes sense
• Support across companies of different sizes and trading positions

No surprise penalties. No underestimation hits at year-end. That is the difference.

How Often Must a Company Submit IRP6 Returns?

Companies normally submit two compulsory IRP6 returns per financial year.

There is also an optional third top-up payment before the ITR14, where it makes sense.

What Is the Underestimation Penalty?

If the second IRP6 estimate is too low compared to the eventual taxable income, SARS can impose an underestimation penalty.

Estimating realistically helps keep the company out of the penalty band.

What Happens If I Overestimate?

If you overestimate, the company may pay more provisional tax than necessary during the year.

The final position is reconciled when the ITR14 is submitted.

Can a Dormant Company File a Nil IRP6?

In some cases, yes. The position depends on the company’s SARS status and whether provisional tax is required.

We confirm the correct treatment before filing.

What Information Is Needed for an IRP6?

You normally need management accounts, trial balance figures, projections, prior tax information, and any relevant income or expense information for the year.

Can Express Shelf Company Help With Outstanding IRP6 Returns?

Yes. Express Shelf Company can help with catch-up IRP6 submissions for outstanding prior periods where needed.