Deferral of the payment of provisional tax for tax compliant SME’s:

What this means:
The tax compliant company, partnership, individual or trust may elect to pay only 15% of the estimated total tax liability as the first provisional tax payment for 2021 (normal circumstances require 50%), while the second provisional tax payment will be based on 65% percent of the estimated total tax liability (normal circumstances at 90%); without SARS imposing administrative penalties. Provisional taxpayers with deferred payments will be required to pay the full tax liability when making the third provisional tax payment in order to avoid interest charges.

Requirements:
• Must be tax compliant;
• gross income not exceeding R100 million
• No more than 20 per cent of their Gross income is derived from Investments (Passive income)