SARS has updated its Guide for Provisional Tax with a clearer process for requesting support for provisional tax estimates. The revised guide, effective from 16 October 2026, confirms that SARS may require a provisional taxpayer to justify an estimate or provide details of income, expenditure and other relevant information. ([sars.gov.za](https://www.sars.gov.za/wp-content/uploads/Ops/Guides/GEN-PT-01-G01-Guide-for-Provisional-Tax-External-Guide.pdf))

This is particularly relevant to companies, owner-managed businesses and other provisional taxpayers preparing their next IRP6 submission. The update does not create a new tax, but it highlights the importance of maintaining a defensible calculation rather than relying on an unsupported figure.

What the updated guide says

Under paragraph 19(3), SARS may ask a provisional taxpayer to justify an estimate or submit further particulars. If SARS is not satisfied with the response, it may increase the estimate to an amount it considers reasonable.

The guide states that an increase made in this way is not subject to objection and appeal. SARS will issue an engagement letter through eFiling and email, and the requested documents must be uploaded through eFiling or the SARS Online Query System within 10 business days. ([sars.gov.za](https://www.sars.gov.za/whats-new-at-sars/))

Who is affected?

The guidance applies to provisional taxpayers, including companies and certain individuals, trusts and other taxpayers with income that is not fully covered by employees’ tax. A company is generally a provisional taxpayer and must submit an estimate of its taxable income for the relevant year of assessment.

For the 2027 year of assessment, the updated guide covers the period from 1 March 2026 to 28 February 2027. It explains that provisional tax is an advance payment towards normal income tax, calculated using estimated taxable income. ([sars.gov.za](https://www.sars.gov.za/wp-content/uploads/Ops/Guides/GEN-PT-01-G01-Guide-for-Provisional-Tax-External-Guide.pdf))

What businesses should check now

  • Reconcile the estimate: Compare the IRP6 estimate with current accounting records, management accounts and year-to-date results.
  • Document significant assumptions: Record explanations for changes in turnover, margins, payroll, financing costs, capital allowances and other material items.
  • Separate accounting and tax treatment: Identify items that may require tax adjustments, such as non-deductible expenditure, capital gains or timing differences.
  • Check the basic amount: Confirm which prior assessment was used and whether the relevant requirements for the basic amount have been met.
  • Prepare a response file: Keep supporting schedules, invoices, general ledger extracts, bank information and tax-adjustment calculations together.

Practical next steps

Businesses should treat a SARS paragraph 19(3) request as time-sensitive. The 10-business-day period should be diarised as soon as the engagement letter is received, with responsibility assigned to a specific finance team member or tax practitioner.

Management should also review whether the provisional tax estimate remains realistic before the next submission. A carefully supported estimate can improve cash-flow planning and reduce the risk of an unexpected tax shortfall, interest or penalties later.

YFP can assist businesses with provisional tax calculations, supporting schedules and broader tax compliance processes. Explore the Your Financial Partner services available to South African businesses.

This article summarises SARS guidance for general information and is not personal tax advice. Businesses should consider their own facts and obtain professional advice where necessary.