If you are a South African expat earning foreign income that is not subject to South African PAYE, you are almost certainly classified as a provisional taxpayer. This means you are required to submit IRP6 provisional tax returns and make estimated tax payments to SARS during the year, not just at year end. Many expats do not realise this, and the penalties for non-submission can add up even when you owe zero tax.
This guide explains how provisional tax for South African expats works, including the deadlines, how to calculate your estimate, when to submit a nil return, and what happens if you miss the deadline.
Why Expats Are Provisional Taxpayers
Under paragraph 1 of the Fourth Schedule to the Income Tax Act, a natural person is a provisional taxpayer if they receive income that is not subject to employees’ tax (PAYE) in South Africa. When you work for a foreign employer abroad, that employer does not register with SARS or withhold SA PAYE from your salary. Your foreign income therefore falls outside the SA PAYE system, which makes you a provisional taxpayer by default.
This applies even if your entire foreign salary is covered by the R1.25 million exemption and you owe zero SA tax. The classification as a provisional taxpayer is about the type of income you receive, not whether you actually owe tax on it.
IRP6 Submission Deadlines
There are two compulsory provisional tax periods during each year of assessment (1 March to 28/29 February).
First period (IRP6 #1): Due within six months of the start of the year of assessment. For the 2026 year (1 March 2025 to 28 February 2026), the first IRP6 is due by 31 August 2025.
Second period (IRP6 #2): Due by the end of the year of assessment. For the 2026 year, the second IRP6 is due by 28 February 2026.
Third period (IRP6 #3): This is a voluntary “top-up” payment due within seven months after the end of the year of assessment (by 30 September 2026 for the 2026 year). The third payment is useful if you underestimated your tax liability in the first two periods and want to avoid interest charges.
How to Calculate Your Provisional Estimate
For each IRP6 submission, you estimate your taxable income for the full year of assessment and calculate the tax that would be due. You then pay the appropriate portion.
For the first period, you pay half of the estimated annual tax liability, less any employees’ tax already withheld (which for most expats is zero).
For the second period, you pay the full estimated annual tax liability, less amounts already paid in the first period.
If your foreign income falls entirely within the R1.25M exemption and you have no other taxable income, your estimated taxable income is zero. You submit a nil IRP6 showing zero estimated income and zero tax payable. This takes five minutes on eFiling and keeps your record clean.
Worked Example: Provisional Tax With the Exemption
Mpho earns GBP 50,000 (approximately R1,175,000 at R23.50/GBP) working in London. She meets the 183-day and 60-day requirements. Her income falls within the R1.25M exemption.
IRP6 #1 (August): Estimated taxable income = R0 (full exemption applies). Tax payable = R0. She submits a nil IRP6.
IRP6 #2 (February): Same calculation. Estimated taxable income = R0. Tax payable = R0. She submits another nil IRP6.
Total time spent: 10 minutes on eFiling. Total tax paid: R0. Total penalties: R0. Had she not submitted the IRP6 returns at all, SARS could levy a 10% late payment penalty on any estimated assessment they issue, plus administrative penalties for non-filing.
Penalties for Non-Submission
If you fail to submit your IRP6 returns on time, SARS can levy a 10% penalty on the difference between the tax that should have been paid and the tax that was actually paid by the due date. If you owe zero tax, the 10% penalty on zero is zero, but SARS can still flag your account as non-compliant, which affects your Tax Compliance Status (TCS).
Non-submission of IRP6 returns also counts towards the administrative non-compliance penalties (R250 to R16,000 per month) that apply when you have two or more outstanding returns. See our full penalties guide for the complete breakdown.
Practical Tips for Provisional Tax as a South African Expat
Always submit, even if you owe nothing. A nil IRP6 takes minutes and prevents penalties, interest, and compliance issues. It is never worth skipping.
Set calendar reminders. The August and February deadlines are easy to forget when you are living abroad and not thinking about SARS. Put them in your calendar at the start of each tax year.
Use eFiling from abroad. IRP6 submissions are done through SARS eFiling. Make sure your eFiling login works from your country of residence. If you have trouble accessing eFiling from abroad, try using a VPN set to South Africa.
What If Your Income Exceeds R1.25 Million?
If your foreign income exceeds the R1.25M exemption, your provisional tax estimate needs to reflect the taxable portion. Calculate the excess above R1.25M, determine your SA tax liability on that amount at your marginal rate, and then subtract the Section 6quat foreign tax credit you expect to claim. The result is your estimated provisional tax payable. Split this between the two IRP6 periods accordingly. Getting the estimate roughly right is important because SARS charges interest if your second estimate is less than 90% of the actual taxable amount for the year.
For the full filing walkthrough, see our guide to filing your expat tax return. For the complete picture, start with the complete guide to South African expat tax.
This guide is for information only and does not constitute tax advice.
Tax and exchange control laws change frequently. Always consult a qualified tax professional before making decisions about your South African tax obligations.