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South Africa: Provisional tax relief for “qualifying taxpayers” (COVID-19)

South Africa: Provisional tax relief

Recent legislation—the Disaster Management Tax Relief Administration Bill—provides relief for taxpayers unable to pay provisional taxes because of the impact of the coronavirus (COVID-19) pandemic.


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The relief is automatically granted to taxpayers that meet the requirements of “qualifying taxpayer” defined as any taxpayer that has gross income of R100 million or less during the year of assessment ending on or after 1 April 2020 but before 1 April 2021.

For these purposes, gross income for the year of assessment does not include more than 20% income derived from interest, dividends, foreign dividends, rental from the letting of fixed property, royalties, annuity income, and remuneration received from any employer.

Taxpayers with a gross income exceeding R100 million can apply to the South African Revenue Service for approval to defer tax payments without incurring penalties and interest.

Read a July 2020 report [PDF 96 KB] prepared by the KPMG member firm in South Africa

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