Provisional tax (IRP6) for South African freelancers

Who is a provisional taxpayer?

Anyone earning income that isn't taxed through an employer's PAYE — which covers almost every freelancer and sole proprietor — plus every registered (Pty) Ltd company. (The R30 000 rule you may have read about applies only to people whose non-employment income is solely interest, dividends or rental.)

The three payment dates

• First period (IRP6): 31 August. Estimate your full-year taxable income and pay at least half of the tax due.
• Second period (IRP6): 28/29 February. Submit an updated estimate and pay the balance.
• Optional top-up: 30 September after year-end, to avoid interest before you file your ITR12 or ITR14.

The underestimation penalty

If your taxable income is over R1 million, your second estimate must be at least 80% of your actual taxable income. Fall short and SARS can charge an underestimation penalty under paragraph 20 of the Fourth Schedule — commonly still referred to by its old section number, s89quat.

What you can deduct (s11(a))

Expenses incurred in the production of income and not of a capital nature:

• A dedicated home office, pro-rated by floor space
• Software and subscriptions (Adobe, Google Workspace, hosting)
• Hardware depreciation (laptops, phones, equipment)
• Cellphone and data, apportioned to business use
• Professional memberships, subcontractors, accounting and legal fees

The simple habit that prevents panic

Move a fixed share of every payment — the kit uses 28% as a savings buffer — into a separate account the day you're paid. When IRP6 is due, the money is already there.