How do you deregister as a provisional taxpayer?
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
It is no longer a requirement to register as a provisional taxpayer and consequently, it will not be required to deregister as one either. The taxpayer, if not required to submit an estimate, simply doesn’t request a return – the IRP6 – on efiling.
Paragraph 17(8), of the Fourth Schedule to the Income Tax Act, used to provide that every person who is a provisional taxpayer must apply to SARS for registration as a provisional taxpayer. This subparagraph was deleted and was explained as follows in the 2015 Explanatory Memorandum:
“This registration requirement is no longer required as paragraph 19 of the Fourth Schedule imposes an obligation to submit a return of an estimate for each year of assessment and section 25 of the Tax Administration Act, 2011, specifies that the return must be in the prescribed form and manner.”