New provisional tax threshold February 14, 2009

By Laura du Preez

The threshold for determining whether a taxpayer over the age of 65 needs to register for provisional tax will be increased significantly.

Currently, if you are over the age of 65 and earn employment income, interest, rental or dividends that amount to R80 000 or more, you need to submit provisional tax returns and, where necessary, make provisional tax payments. The South African Revenue Service plans to increase this threshold to R120 000.
Taxpayers under the age of 65 still need to register for provisional tax if they earn untaxed income, interest income, rental or dividends that exceed R20 000 a year.