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The short answer
Anyone in South Africa earning income other than salary, which includes freelance fees, is a provisional taxpayer and pays tax in two IRP6 instalments: by 31 August 2026 and by 26 February 2027 for the 2027 year, with an optional top-up by 30 September 2027. SARS charges 10% on late payments and 20% of the shortfall if the second estimate is too low.
If you freelance in South Africa, no employer deducts tax from your pay each month. SARS expects you to pay during the year instead, in instalments called provisional tax, using the IRP6 return. Get it wrong and the penalties are specific and avoidable. This guide covers who must file, the dates for the current year, how the estimates work and the penalties, using SARS's own pages.
Who is a provisional taxpayer
SARS's provisional tax page (updated 21 August 2026) defines a provisional taxpayer as any person who receives income other than remuneration, any company, anyone SARS tells is one, and a person paid remuneration by an employer not registered for employees' tax. Freelance fees, consulting income, brand deals and rental income all count as income other than remuneration.
An individual with no business income is excluded if taxable income for the 2027 year of assessment will not exceed the tax threshold (R99,000 under 65, R153,250 for 65 to 74, R171,300 for 75 and over), or if their only extra income (interest, foreign dividends, rental, unregistered-employer pay) is R30,000 or less. A freelancer carries on a business, so these exclusions will not usually help you.
The payment dates
For individuals the tax year runs from 1 March to the end of February. SARS's page sets the periods as follows; the dates below apply them to the 2027 year of assessment (1 March 2026 to 28 February 2027):
| Payment | Rule on SARS's page | Date for the 2027 year |
|---|---|---|
| First | Within six months of the start of the year (31 August, or the last business day before it) | Monday 31 August 2026 |
| Second | The last business day of the year of assessment (February) | Friday 26 February 2027 (28 February is a Sunday) |
| Third (voluntary top-up) | For individuals, the last business day of September after year end | Thursday 30 September 2027 |
Each payment is made with an IRP6 return on eFiling, where you give your estimate of taxable income for the whole year. The first payment is half the estimated tax for the year, less employees' tax and foreign tax credits for six months and rebates. The second is the full-year tax less the full-year credits and the first payment. The third clears what is left and, by SARS's 2026 Budget FAQ, avoids interest.
Penalties
Late payment
SARS Interpretation Note 1 (Issue 3, 20 February 2019) describes a penalty of 10% of provisional tax not paid by the due date, applying to the first and second payments. Interest at the prescribed rate also runs on unpaid amounts.
Underestimating your income
The second-period estimate is tested against your final taxable income:
- Taxable income above R1 million: a penalty applies if your second estimate is below 80% of actual taxable income. It is 20% of the gap between normal tax on 80% of actual taxable income and the employees' tax and provisional tax you paid by year end.
- Taxable income of R1 million or less: a penalty applies only if your estimate is below 90% of actual taxable income and also below the basic amount (last assessed year's taxable income, less taxable capital gains and certain lump sums). If your estimate was at least the basic amount, no penalty applies.
If you do not file a second estimate within four months of year end, SARS treats it as nil, which can make the penalty much larger. SARS may remit the penalty if the estimate was seriously calculated and not deliberately or negligently understated.
Worked example
Example (illustrative only): a freelancer's final taxable income for the 2027 year is R1,500,000 and her second estimate was R1,000,000, below 80% (R1,200,000). Using the 2026/27 tables in SARS's Budget FAQ, tax on R1,200,000 is R259,783 + 41% x (R1,200,000 - R887,000) = R259,783 + R128,330 = R388,113, less the primary rebate of R17,820 = R370,293. She paid R250,000 in provisional tax. The gap is R120,293, and the penalty is 20% of that: R24,058.60. A higher second estimate, or a top-up by 30 September 2027, would have reduced the exposure.
What to check first
- Register as a provisional taxpayer and make sure IRP6 is available on your eFiling profile. A SARS tax number comes first: see getting a SARS tax number as a foreign national.
- Keep monthly income records in rand, including fees paid in naira or dollars, converted consistently. See recording naira income for SARS.
- Set aside a fixed share of each payment for tax.
- Use your last assessed taxable income as a floor for the estimate if your income is under R1 million.
- Review in January whether the February estimate needs raising.
If your turnover is small, compare the turnover tax option in turnover tax for freelancers. Tax points here are information, not advice; a registered tax practitioner can check your figures.
Where Pryme fits
With a Pryme Business Account, fees from Nigerian clients can sit in naira or dollars until you convert, and the Finance agent can prepare a monthly income summary to support your IRP6 estimate; a person approves, and nothing is filed for you.
Questions people ask
When is provisional tax due in South Africa?
The first payment is due within six months of the tax year starting (31 August) and the second on the last business day of February. Individuals can make a voluntary third payment by the last business day of September after year end.
Do I need to register for provisional tax as a freelancer?
Yes, if you earn income other than remuneration. SARS's page lists exclusions for people with no business income below set thresholds; freelancers carry on a business, so they generally do not qualify.
What is the penalty for underestimating provisional tax?
20% of the shortfall, tested against 80% of actual taxable income if it exceeds R1 million, or against 90% and the basic amount if it is R1 million or less, per SARS Interpretation Note 1.
What happens if I miss the IRP6 deadline?
SARS Interpretation Note 1 describes a 10% penalty on provisional tax not paid by the due date, plus interest. No second estimate within four months of year end is treated as a nil estimate.
Sources
- SARS: Provisional tax (last updated 21 Aug 2026) · accessed Oct 2026
- SARS Interpretation Note 1 (Issue 3, 20 Feb 2019): provisional tax estimates · accessed Oct 2026
- SARS: Budget 2026 frequently asked questions (updated 12 Aug 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.