All registered companies in South Africa must submit their IRP6 provisional tax return by 31 August 2025. This mid-year submission is essential to remain compliant with SARS. Missing the deadline can result in penalties, interest, and unnecessary compliance headaches.
In this article, we discuss everything you need to know to avoid penalties and stay compliant.
What is an IRP6?
Provisional tax is not a separate tax – it’s a system that allows companies to prepay a portion of their income tax to SARS based on estimated income and expenses. SARS requires all companies to submit their IRP6 return twice a year – by end of August and end of February.
Submitting a Provisional Tax Return helps manage your tax liability throughout the year
and avoids a large tax bill when SARS issues your final assessment.
Who Must Submit?
ll registered companies are automatically considered provisional taxpayers whether
they are actively trading or dormant.
This includes:
- (Pty) Ltd companies
- Close corporations (CCs)
- Any small business that is formally registered with CIPC
If you are trading as a sole proprietor and your income is more than R30,000 per year, you are also considered a provisional taxpayer.
Benefits of Submitting on Time
- Avoid SARS penalties and interest.
- Smooth out cash flow across the year.
- Maintain a clean compliance record.
- Remain eligible for tenders, tax clearance, and funding.
Consequences of Missing the Deadline
- Late payment penalty of 10% on any unpaid amount (even for a day) for each payment period.
- Under‑estimation penalty if your final income exceeds your second estimate.
- Interest accrues at the prescribed SARS rate (~10% p.a.), and relief is seldom
granted now. Interest compounding daily. - SARS may estimate your taxable income and issue an assessment.
- Compliance status culprits—affecting tax clearance, tenders, and funding.
- Increased risk of audit and SARS intervention.
How APS Can Help
Our experts provide:
• Accurate estimation of taxable income to minimise penalties.
• Tax strategy to spread payments and manage cash flow
• Full e-Filing return submission support.
• Ongoing monitoring to keep you compliant and audit-ready.
We can fast-track your IRP6 submission before 31 August — stress-free.
In Closing
Don’t underestimate your IRP6 submission. Submit before 31 August and avoid unnecessary tax drama. If you’re not sure of your numbers or just don’t have time, Company Partners is here to assist.
Please do not hesitate to contact us should you require any further help regarding this very important matter.
