RSA Tax published online its SMME Connect newsletter Issue 12 of Aug. 2025.
Among other things, newsletter covers turnover tax, provisional tax, filing season 2025.
Provisional Tax
This tax concerns freelancers, sole proprietors, consultants, companies or trusts.
Individuals who earn additional income like rental income or investment income.
A provisional taxpayer must request and submit a return (IRP6) for the first and second period even if the total amount of tax due and payable is nil (0).
The first payment is at the end of Aug., second payment at the end of Feb., third/top up payment-optional at the end of Sep.; they are based on estimated taxable income.
If the provisional payments are less than 90% of the actual tax due, there is a penalty of 20% of the underpaid amount and a daily interest on late or underpaid amounts.
For non-payment, there is an automatic 10% penalty for late or non-submission and a 20% penalty on underpaid taxes; interest charged monthly until payment is made.
Turnover Tax
Obligations for August include completion and submission on time and accurately.
Forms to use are the prescribed turnover tax return forms (TT02 and TT03).
Detailed records of all transactions and supporting documents to substantiate the turnover declared should be kept, including invoices, receipts, relevant documentation.
Missed deadlines for filing and payment can result in penalties and interest charges.
The first payment is due on Aug. 29, 2025; the second one is due on Feb. 28, 2026.
Filing Season 2025
RSA Tax issued Auto Assessments to taxpayers whose tax affairs are less complicated.
If taxpayers agree with that, no further action is required, acceptance is automatic.
Non-provisional taxpayers must file from Jul. 21-Oct. 20, 2025; provisional taxpayers have until Jan. 19, 2026 to file their returns; most refunds are due within 72 hours.
Key changes for tax season 2025 include the residency declarations for RSA expats.
The section 6quat amendment with effect from Mar. 1, 2025, which allow taxpayers to fully use foreign tax credits for taxes paid on capital gains in the foreign jurisdiction.
Effective from Mar. 1, 2025, employers must report specific details relating to sections 11(nA) and 11(nB) of the Income Tax Act on the IRP5/IT3(a) tax certificate; these legislative changes were made to align with the amendments affecting the ITR12.
Effectiveness
Turnover Tax filing and payment are due on Aug. 31, 2025; registration is required.
Provisional tax payments and tax returns of the more than 53.18% SMMEs who have a financial year-end of Feb. are due on Aug. 31, 2025.
