When are provisional tax deadlines for South African freelancers?

Freelancers and independent contractors in South Africa must submit provisional tax returns twice yearly: First period ends 31 August (payment due by 31 August), Second period ends 28/29 February (payment due by last day of February). If you're registered as a provisional taxpayer, missing these deadlines incurs penalties of 10% of the tax amount, plus interest on late payments.

Do I need to register as a provisional taxpayer as a freelancer?

Yes, most freelancers must register as provisional taxpayers with SARS. You're required to register if: your income from freelance work exceeds R30,000 annually, you receive income that doesn't have PAYE deducted, or you earn taxable income beyond your salary (if you also have employment). Register within 21 days of starting freelance work or notify SARS by end of February in the tax year you first earn freelance income.

How much provisional tax should I pay each period?

Calculate provisional tax based on estimated annual taxable income. First period (Aug): Pay based on previous year's taxable income or current year estimate. Second period (Feb): True-up to match actual earnings for the full tax year. Use the basic SARS formula: estimate annual taxable income, apply tax tables, deduct rebates and credits, divide by 2 for each payment. Underpayment by more than 10% in first period triggers penalties, so err on slightly higher estimates.

What happens if I miss a provisional tax deadline?

Missing SARS deadlines results in: 10% penalty of the tax amount owed (minimum R250), interest on late payment calculated daily from due date at prescribed SARS rate (~10-11% annually), potential administrative penalties up to R16,000 for repeated non-compliance, and negative compliance status affecting your tax clearance certificate. Always submit on time even if you can't pay the full amount immediately - you can arrange payment plans with SARS.

Can I adjust my provisional tax payments if my income changes?

Yes, provisional tax is based on reasonable estimates of annual income. If your actual income differs significantly from estimates: for first payment, use previous year's income or current year projection. For second payment (Feb), adjust based on actual year-to-date earnings. If income increased unexpectedly, you must increase second payment to avoid underpayment penalties. If income decreased, reduce second payment but be conservative to avoid penalties.

What tax deductions can freelancers claim to reduce provisional tax?

Freelancers can claim business expenses to reduce taxable income including: home office expenses (proportionate rent/bond, electricity, internet), business equipment and tools, vehicle expenses (business use percentage), travel and accommodation for work, professional development and training, business insurance premiums, advertising and marketing costs, accounting and legal fees, and software subscriptions. Keep detailed records and receipts to substantiate all deductions during SARS audits.

How does VAT registration affect my tax calendar as a freelancer?

VAT registration adds another layer to your tax calendar. Mandatory VAT registration applies if turnover exceeds R1 million annually. Once registered, you must: submit VAT returns every 2 months (bi-monthly), make VAT payments within 25 days after period end, or submit monthly returns if turnover >R30 million. VAT return periods are: Jan-Feb (due 25 March), Mar-Apr (due 25 May), May-Jun (due 25 July), Jul-Aug (due 25 Sept), Sep-Oct (due 25 Nov), Nov-Dec (due 25 Jan). Missing VAT deadlines incurs R250-R16,000 penalties.

Should I make quarterly tax payments instead of twice yearly?

While SARS only requires two provisional tax payments annually, paying quarterly can improve cash flow management and reduce the risk of large lump-sum payments. Many freelancers voluntarily set aside 25-30% of monthly income for taxes and make quarterly estimates. This smooths cash flow, prevents scrambling for large payments at deadlines, reduces underpayment risk, and helps maintain business liquidity. Consider quarterly internal planning even though official payments are biannual.

Tax & Finance

Tax Planning Calendar for South African Freelancers 2025

Complete tax planning calendar for South African freelancers and independent contractors. Learn provisional tax deadlines, payment schedules, deduction timing, year-round strategies, and penalty avoidance to stay SARS-compliant.

2025-11-10

10 min read

By SA Tools Hub

Master Your Freelance Tax Calendar

Tax compliance for South African freelancers isn't just about paying SARS at year-end. It's an ongoing process with critical deadlines throughout the year. Missing these deadlines results in penalties, interest charges, and potential compliance issues affecting your business.

This comprehensive tax calendar guides you through every important date, payment period, and planning opportunity for 2025, helping you stay compliant, minimize tax liability, and avoid costly penalties.

2025 Tax Year Overview for Freelancers

Understanding SARS Tax Years

2025 Tax Year (Current):

• Period: 1 March 2024 - 28 February 2025
• Provisional Tax 1: Due 31 August 2024
• Provisional Tax 2: Due 28 February 2025
• Annual Return: Due by 23 November 2025 (non-provisional) or 23 January 2026 (provisional)

2026 Tax Year (Upcoming):

• Period: 1 March 2025 - 28 February 2026
• Provisional Tax 1: Due 31 August 2025
• Provisional Tax 2: Due 28 February 2026
• Annual Return: Due by November 2026 (dates TBC)

Critical Tax Deadlines Calendar

January 2025

23 January: Provisional Taxpayer Annual Returns

Final deadline for provisional taxpayers to submit their 2024 tax year (Mar 2023 - Feb 2024) annual return.

Action Required: Ensure prior year return filed, gather all 2024/25 tax year invoices and receipts.

25 January: VAT Return (Nov-Dec 2024 period)

If VAT registered, submit and pay Nov-Dec 2024 VAT return.

February 2025

28 February: Second Provisional Tax Payment (CRITICAL)

Final provisional tax payment for 2024/25 tax year. Calculate based on actual year-to-date income. This is your true-up payment - adjust for actual vs estimated income.

Penalty for Late Payment: 10% of tax amount + interest. Missing this deadline is costly!

Last day of Feb: VAT Registration Deadline

If you exceeded R1M turnover in 2024, you must register for VAT by end of February 2025.

March 2025

1 March: New Tax Year Begins (2025/26)

Start fresh record-keeping for new tax year. Review deductions strategy, update accounting systems.

25 March: VAT Return (Jan-Feb 2025 period)

Submit and pay Jan-Feb 2025 VAT if registered.

May 2025

25 May: VAT Return (Mar-Apr 2025 period)

Submit and pay Mar-Apr 2025 VAT return.

July 2025

25 July: VAT Return (May-Jun 2025 period)

Submit and pay May-Jun 2025 VAT return.

Mid-July: Review YTD Income

Mid-year tax planning: review income, adjust provisional tax estimates, maximize deductions.

August 2025

31 August: First Provisional Tax Payment (CRITICAL)

First provisional tax payment for 2025/26 tax year. Calculate based on previous year's taxable income or current year estimate.

Calculation Base: Use 2024/25 actual taxable income OR estimate 2025/26 income conservatively.

September 2025

25 September: VAT Return (Jul-Aug 2025 period)

Submit and pay Jul-Aug 2025 VAT return.

November 2025

23 November: Non-Provisional Taxpayer Annual Returns

If not registered as provisional taxpayer, annual return due for 2024/25 tax year.

25 November: VAT Return (Sep-Oct 2025 period)

Submit and pay Sep-Oct 2025 VAT return.

Year-Round Tax Planning Strategies

Smart tax planning happens continuously, not just at deadline time. Implement these quarterly strategies:

Q1 (Mar-May): Fresh Start

✓ Set up accounting systems for new tax year
✓ Review tax strategy: deductions, retirement annuities
✓ Update invoicing templates with correct year
✓ Organize digital filing system for receipts and invoices
✓ Calculate estimated annual income for provisional tax planning

Q2 (Jun-Aug): Mid-Year Review

✓ Review YTD income and expenses
✓ Adjust provisional tax estimates if income varies
✓ Maximize deductible expenses: equipment, training
✓ Review retirement annuity contributions for deductions
✓ Prepare for Aug 31 provisional tax payment

Q3 (Sep-Nov): Optimization

✓ Accelerate deductible expenses if income high
✓ Defer income to next year if beneficial (invoice timing)
✓ Review asset purchases for capital allowances
✓ Maximize retirement contributions before year-end
✓ Plan for bad debts write-off if uncollectable

Q4 (Dec-Feb): Year-End Finalization

✓ Finalize all tax-deductible purchases
✓ Reconcile accounts and bank statements
✓ Calculate actual annual income for Feb payment
✓ Gather all receipts, invoices, proof of expenses
✓ Submit and pay second provisional tax by Feb 28

Penalty Avoidance Guide

Understanding SARS Penalties

SARS penalties are significant and accumulate quickly. Here's what you're risking:

Late Submission Penalties:

• 1 month late: R250 penalty per month
• Repeated non-compliance: Up to R16,000
• Annual return: R250/month, max R16,000
• Provisional tax: 10% of tax owed

Late Payment Interest:

• Interest rate: ~10-11% per annum
• Calculation: Daily compounding from due date
• Example: R10k late 3 months = R250 interest
• Penalty + Interest: Both apply simultaneously

Underpayment Penalties:

If your provisional tax payments are more than 10% less than your final tax liability, SARS charges a 20% penalty on the shortfall. Always err on the side of slightly overestimating to avoid this costly penalty.

Tax Record-Keeping Checklist

Essential Documents to Maintain:

Income Records:

✓ All invoices issued to clients
✓ Bank statements showing deposits
✓ Payment receipts from clients
✓ Foreign currency conversions (if applicable)
✓ Contract agreements with clients

Expense Records:

✓ Receipts for all business purchases
✓ Home office expense calculations
✓ Vehicle logbook for business travel
✓ Professional development invoices
✓ Equipment and software purchases

Retention Period: SARS requires you to keep records for 5 years from date of submission of relevant return. Use cloud storage (Google Drive, Dropbox) for secure, accessible backup.

Calculate Your Quarterly Taxes

Use our free Freelance Tax Calculator to estimate your provisional tax payments for each period. Avoid underpayment penalties and plan your cash flow throughout the year.

Calculate Your Taxes →