A provisional taxpayer includes:
- Any company (and close corporation)
- Any person notified by SARS
- Any person who derives non-remuneration income.
Non remuneration excludes salary and wages, bonuses commissions etc, allowances, pensions annuities etc, retirement lump sums, fringe benefits, share options etc.
In other words, interest, dividends, income from business and rental income fall under the definition of non-remuneration.
Excluded from the definition of Provisional Taxpayer:
- PBO’s, recreational clubs, and body associates
- Natural persons under the age of 65, who do not carry on a business, and receive income from interest, dividends or rental income, and which does not exceed R20,000 pa. (paragraph 18)
- Natural persons over the age of 65, other than a director, whose taxable income will not exceed R120, 000, and is not derived from a business endeavour.
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