WorksheetsProvisional Tax
Total questions: 12
Worksheet time: 26mins
A provisional taxpayer includes any person who earns income other than remuneration, such as rental income or business profits.
TRUE
FALSE
Companies are automatically classified as provisional taxpayers.
TRUE
FALSE
A 25 year-old taxpayer estimates their taxable income for the 2024 tax year at R800,000. Calculate the first provisional tax payment due on 31 August 2024
R228 677
R211 442
R105 721
A company with an actual taxable income of R1,200,000 made a first provisional payment and second provisional payment of R150 000 and R180 000. Does the company have to make a 3rd top-up payment to avoid penalties?
YES
NO
The basic amount for the first provisional tax payment is based on:
Estimated / Budgeted income for the year. Including taxable capital gains.
Taxable income from the latest preceding year of assessment, including capital gains and retirement lump sums.
Income reasonably expected in terms of a contract
Taxable income from the latest preceding year of assessment, excluding capital gains and retirement lump sums.
If more than 18 months have passed since the end of the latest preceding year of assessment, the basic amount must be increased by 8% for each year that has elapsed.
TRUE
FALSE
The second provisional payment estimate may be less than the basic amount.
FALSE
TRUE
TRUE, if the circumstances of the case are justified
FALSE, only the 1st provisional payment may be less than the basic amount
If the Notice of assessment (NOA) for the prior year is received less than 14 days before the first provisional payment is due, what should the taxpayer do?
Use the NOA for the latest preceding year of assessment (LPYOA)
Use the NOA for the second latest preceding year of assessment (LPYOA).
Use an estimate of the current year’s taxable income.
Submit a Nil return
Mr. D's (46 years) latest Notice of assessment (NOA) for the 2021 year of assessment was issued on 15 August 2022.
• The 2022 year of assessment’s NOA was issued on 25 August 2022.
Scenario:
The taxpayer is required to determine their taxable income for the first provisional tax payment for 2023. Their taxable income from the 2021 year was R800,000, and their taxable income from the 2022 year was R850,000.
What is his basic amount for the 2023 year of assessment?
R918 000
R864 000
R850 000
R800 000
Mrs White (56 years) estimated her taxable income for the 2024 year at R950,000 but her actual taxable income for the year was R1,200,000. She made a first and second provisional tax payment of R150,000 and R120 000 respectively.
Calculate any underestimate penalties payable if any:
R1 177
R5 884
R24 304
R14 464
ABC (Pty) Ltd has an actual taxable income for the 2024 year of R950,000. ABC made a first provisional payment of R90,000 and a second provisional payment of R160,000, but the second payment was made late.
Calculate the total amount due to SARS.
R6 500
R22 500
R189 000
R650
Mr. D (46) taxpayer has the following details for the 2024 YOA:
• Actual taxable income: R1,050,000.
• First provisional payment: R120,000 (paid on time).
• Second provisional payment: R180,000 (paid 5 days late).
Mr. D made an estimate less than basic amount for the 2nd provisional payment therefore an underestimate penalty of R20 000 was charged.
Calculate the total amount due to SARS by Mr. D.
R14 784
R32 019
R32 784
R50 784
