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Provisional tax is not a separate tax from income tax. It is a method of paying the income tax liability in advance, to ensure that the taxpayer does not have a large tax debt on assessment. Provisional tax allows for the tax liability to be spread over the relevant tax year. It requires provisional taxpayers to pay at least two amounts in advance, during the tax, which are based on estimated taxable income. A third payment is optional after the end of the tax year, but before the issuing of the assessment by SARS. On assessment, the provisional payments will be offset against the liability for income tax for the applicable tax year.

From an individual's perspective, a provisional taxpayer is defined under para 1 of the Fourth Schedule to the ITA as a natural person who derives income, other than remuneration or an allowance or advance or who derives remuneration from an employer who is not registered for PAYE.

Therefore,