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Free SA Tax Tool · 2025/26

South African Provisional Tax & Under-Estimation Penalty Calculator

If you under-estimate your second-period (P2) taxable income, SARS levies a 20% under-estimation penalty under paragraph 20 of the Fourth Schedule. For example, on actual taxable income of R2,000,000 with a P2 estimate of just R1,200,000 (age 30, R374,284 of PAYE and provisional tax already paid), the penalty works out to R32,800 — that is 20% of the R164,000 shortfall between the tax on the required 80% estimate and the tax already paid. Enter your own figures below.

✓ Verified against SARS figures in CI
R

Your final assessed taxable income for the year.

R

The taxable income you estimated for the second period.

R

From your latest assessment (para 19), escalated 8%/yr if > 18 months old.

R

Auto-filled with the normal tax on your P2 estimate (the provisional tax you'd normally have paid). Edit it if your actual PAYE + provisional paid differs.

Age at the end of the 2025/26 year of assessment (28 Feb 2026): 30. Determines the 65+ / 75+ rebates.

Under-estimation penalty
R32,800

Paragraph 20, Fourth Schedule

TierHigh (actual > R1m, 80% test)
Penalty appliesYes
Tax on required estimateR538,284
Amount paidR374,284
ShortfallR164,000

Penalty = 20% × shortfall. The shortfall is the tax on the required estimate less the PAYE and provisional tax you paid, floored at zero.

How it's calculated

The rules behind the number.

Every figure traces to a section of the Income Tax Act. Here are the provisions this calculator applies.

Fourth Schedule, paragraph 19

The basic amount

Your basic amount is the taxable income from the latest assessment issued at least 14 days before the payment is due. If that assessment covers a year ending more than 18 months before the current period, it is escalated by 8% per year. Using the basic amount as your P2 estimate shields you from the penalty when actual taxable income is R1 million or less.

Fourth Schedule, paragraph 20

The under-estimation penalty (80% / 90% tests)

If actual taxable income exceeds R1 million, your P2 estimate must reach at least 80% of actual (the 80% test). If actual taxable income is R1 million or less, your estimate must reach 90% of actual OR equal the basic amount (the 90% test). Fall short and SARS levies a penalty of 20% of the difference between the tax on the required estimate and the PAYE plus provisional tax you actually paid.

Fourth Schedule, paragraph 23

When payments are due

The first period (P1) payment is due within six months of the start of the year of assessment (31 August for a February year-end); the second (P2) by the last day of the year (28/29 February). An optional third top-up may be made within six months after year-end.

Section 89quat

Interest on underpayment

Separately from the paragraph-20 penalty, section 89quat charges interest where the normal tax exceeds the provisional and employees' tax paid. A voluntary third (P3) top-up before the section-89quat date reduces or avoids this interest.

Questions & Answers

Provisional tax, answered.

When are provisional tax payments due in South Africa?
Under paragraph 23 of the Fourth Schedule, the first payment (P1) is due within six months of the start of the year of assessment — 31 August for a February year-end. The second (P2) is due by the last day of the year of assessment (28/29 February). An optional third top-up (P3) may be made within six months after year-end to avoid section 89quat interest.
What is the under-estimation penalty on provisional tax?
Paragraph 20 levies a 20% penalty when your P2 estimate is too low, tested against your actual assessed taxable income. If actual income exceeds R1 million the estimate must reach 80% of actual; if it is R1 million or less it must reach 90% of actual or equal the basic amount. The penalty is 20% of the shortfall between the tax on the required estimate and the PAYE plus provisional tax actually paid.
What is the basic amount for provisional tax?
The basic amount (paragraph 19) is the taxable income from your latest assessment issued at least 14 days before the payment is due, escalated by 8% per year if that assessment is more than 18 months old. Using it as your estimate protects you from the paragraph-20 penalty when actual taxable income is R1 million or less.
How is the provisional tax penalty calculated?
It is 20% of the difference between the normal tax on the required estimate (80% of actual for high earners, or the lesser of tax on 90% of actual and tax on the basic amount otherwise) and the total PAYE and provisional tax you actually paid. If you paid enough, the shortfall is zero and no penalty applies.
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This calculator is a practice management tool and does not constitute formal tax advice. Figures are computed for the 2025/26 year of assessment and verified against SARS published figures in CI — see our methodology. Always consult a registered tax practitioner for binding opinions.