A Doctor’s Guide to Provisional Tax in South Africa

Finances
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A Doctor’s Guide to Provisional Tax in South Africa

Does Your Income Include Any of the Following?

  • Locum income

  • Independent contractor income

  • Freelance GP income

  • Income from an agency

  • Income from your own medical practice

  • Any income that is not a fixed monthly salary

  • Rental income

  • Interest earned

  • Dividends

If you answered yes to any of the above, you are likely a provisional taxpayer.

Who Is a Provisional Taxpayer?

In South Africa, a provisional taxpayer is any person who earns income other than a fixed salary.

For medical professionals, this typically includes:

  • Locum doctors

  • Freelance practitioners

  • Independent contractors

  • Doctors running their own practices

Provisional taxpayers pay income tax in advance by submitting IRP6 returns twice a year (August and February) through South African Revenue Service (SARS).

What Is Provisional Tax?

Provisional tax is not a separate tax.

It is an advance payment system for income tax designed for individuals who earn income outside of normal salary structures (where PAYE is deducted monthly).

Doctors must:

  • Submit two IRP6 returns per year (August and February)

  • Make corresponding payments via SARS eFiling

  • Submit an annual income tax return after the financial year-end

The purpose is simple: avoid a large tax debt at year-end.

Why Is Provisional Tax So Important for Doctors?

Many doctors:

  • Operate as sole proprietors

  • Earn multiple income streams

  • Receive income without PAYE deductions

Without provisional payments, tax accumulates quickly.

Failing to plan can result in a significant and financially crippling liability at year-end.

Common Pitfalls of Non-Compliance

  • Underestimating taxable income in the second IRP6 submission

  • Late submissions, resulting in penalties and interest

  • Poor cash flow management

  • Misunderstanding provisional taxpayer status

  • Incorrect inclusion or exclusion of income

  • Failure to register as a provisional taxpayer

  • Weak or inaccurate accounting records

Practical Tips for Doctors

:check_mark: Know the deadlines (August & February)
:check_mark: Estimate income realistically — especially your second IRP6
:check_mark: Plan your cash flow — set aside tax monthly
:check_mark: Optimise legitimate deductions
:check_mark: Keep accurate accounting records
:check_mark: Use SARS eFiling correctly and consistently