The provisional taxes for the First Period for taxpayers with February year ends are due on 31 August 2010. We are currently preparing these returns and will be in contact with our clients soon.

SARS has changed some of the rules regarding provisional tax. Provisional tax is based on the Basic Amount. The basic amount is equal to the latest assessed taxable income (however, the assessment notice should be issued not less than 60 days before 31 August 2010, ie 1 July 2010)PLUS 8% increase for each year from the last assessment if that assessment is not the 2010 assessment. For example:
Last assessment 2009 - Income R200 000
Basic amount for 2011 is calculated as follows:
The last assessment was for 2009, 2 years from 2011, thus 8% for 2009 and 8% for 2010 = 16%. The basic amount for 2011 is therefore R232 000 (R200 000 + 16%).

You may estimate your taxable income lower than the basic amount as explained above, but then the following rules are applicable:

Taxable Income up to R1m = 90% of actual taxable income for the year.

Taxable Income above R1m = 80% of actual taxable income for the year.