Concepts & events

Provisional tax & crypto

When crypto gains make you a provisional taxpayer, what to include in IRP6 estimates, and the August and February deadlines.

Last reviewed: · Reviewed by Johan Pretorius, Registered Tax Practitioner

Why crypto triggers provisional tax

Provisional tax is not a separate crypto tax. It is the mechanism SARS uses to collect income tax during the year from people whose tax is not fully covered by PAYE. If your crypto disposals and income produce tax that was not prepaid through PAYE, you may need to account for it in provisional estimates — not only on your final annual return (ITR12).

Who is a provisional taxpayer?

You are generally a provisional taxpayer if you earn income other than salary subject to PAYE — for example business income, rental income, or material trading profits — or if your taxable income exceeds the thresholds SARS sets each year. Active crypto traders and investors with significant disposals often fall into this category even if they also have a salaried job.

What to include from crypto

Include expected tax on:

  • Capital gains after the annual exclusion and 40% inclusion (if your disposals are capital in character).
  • Revenue gains from trading (full amount at marginal rates).
  • Income receipts — staking, mining, airdrops linked to services, salary in crypto.

Base your estimate on year-to-date actuals plus a reasonable forecast for the remainder of the year. Under-estimating attracts penalties and interest.

When returns are due

For a natural person with a 1 March year-end, the usual provisional cycle is:

  • First period (IRP6): due end-August — estimate tax for the full year based on half-year actuals and a forecast.
  • Second period (IRP6): due end-February — revise the full-year estimate with updated figures.

The final ITR12 then reconciles what you paid provisionally against your actual liability.

Worked example (simplified)

Suppose by August you have realised R80,000 net capital gain on crypto (capital character). After the R40,000 exclusion, R40,000 remains; 40% inclusion adds R16,000 to taxable income. If your marginal rate is 31%, provisional tax on that slice is roughly R4,960 — plus any revenue crypto income you expect for the rest of the year. Your August IRP6 should reflect the full-year estimate, not only the gain to date.

Not tax advice

Provisional thresholds and calculations are fact-specific — confirm your status and estimates with a registered tax practitioner.

Frequently asked questions

Do I pay provisional tax on crypto?
If you are a provisional taxpayer and have material crypto gains or income not covered by PAYE, yes — include expected crypto tax in your IRP6 estimates, not only on the final ITR12.
When are provisional tax returns due?
For a 1 March year-end, the first IRP6 is generally due end-August and the second end-February, each reflecting your full-year estimate.
What happens if I under-estimate?
Under-estimation of provisional tax can attract penalties and interest under the Fourth Schedule, on top of any shortfall on the final ITR12.

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