Johannesburg – With tax season in full swing and the February provisional tax deadline looming, some South African taxpayers are focusing on the wrong threat, a tax expert warns
While a missed deadline automatically triggers a 10% penalty, leading online tax platform TaxTim warns that far more taxpayers are being caught out by a less obvious, and often more costly mistake: underestimating their income.
According to Daniel Swiegers, director, TaxTim, provisional tax penalties can begin long before a deadline is missed.
They arise when taxable income is underestimated in your second provisional submission.
By the time a taxpayer submits their annual tax return, a penalty may already have been triggered — often without the taxpayer realising anything was wrong.
“SARS doesn’t only penalise people for being late — it penalises people for being wrong,” Swiegers said on Wednesday, 11 February 2026.
How to avoid penalties
TaxTim has identified several common misunderstandings.
Are you a provisional taxpayer?
Many people think they can choose whether to be a provisional taxpayer. In reality, SARS decides based on how you earn your money.
If all your income comes from one employer that deducts PAYE from your salary, you are usually not a provisional taxpayer.
If you earn money outside a normal salary, such as freelance income, commissions, rental income, or regular side work, you are likely a provisional taxpayer.
If you are unsure, it is safer to check your status early rather than assume.
Copying last year’s numbers: Don’t base your estimate on last year’s income.
To get this right, your second provisional estimate should be your best real guess of what you will actually earn for the full year, not what you earned last year.
If your income has increased, your estimate should increase as well.
Your second submission is a reality check.
‘I’ll fix it later’: Many taxpayers assume they can sort out everything when they file their annual tax return.
The problem is that by then, SARS may already have calculated a penalty based on your earlier estimate.
Fixing it later does not remove that penalty.
Get the estimate as close to correct as possible in your second submission.
TaxTim notes that penalties often crystallise at the second provisional tax submission.
This is where SARS expects income estimates to reflect the year’s actual financial reality, not outdated assumptions from the first submission.
When the annual tax return is submitted with final figures, material underestimation typically becomes visible to SARS systems, and penalties and interest are automatically applied.
“Most of the provisional tax penalties we see are avoidable.
A simple end-of-year sense check and a better understanding of how SARS evaluates estimates would prevent most of these cases. The message for taxpayers is clear,” stated Swiegers.
“Don’t just watch the deadline. Watch your estimate.
“Review your income streams now, adjust your second provisional tax submission to match reality, and avoid an expensive surprise when you file your annual return.”
TaxTim’s platform is designed to help taxpayers avoid these penalties entirely.
Using clear, plain-language guidance, the system walks users through their provisional tax obligations step by step, helping them determine whether to register, estimate their income accurately, and submit on time.
For taxpayers who want the confidence of getting their provisional tax right the first time, without the cost of a traditional tax practitioner, TaxTim offers a simple, affordable solution at www.taxtim.com.
