Third Provisional Tax Payments and Top-Up Payments: Preparing for the February 2027 Deadline

Most small business owners know the drill: first provisional payment by end of August, second by the end of February. But there's a third, lesser-known payment that catches many taxpayers off guard — the top-up payment, and it's worth understanding well before your February 2027 year-end deadline approaches.

What Is the Third Provisional Payment, Really?

Unlike the first two IRP6 submissions, the third provisional payment is optional — SARS doesn't force you to make it. It exists purely as a safety net, allowing taxpayers to top up their tax paid after their year-end, once actual figures (rather than estimates) are available.

For businesses and individuals with a February 2027 year-end, this means:

• First provisional payment (IRP6): due 31 August 2026, based on estimated taxable income
• Second provisional payment (IRP6): due by the last business day of February 2027 (26 February 2027), a more refined estimate
• Third top-up payment: optional, generally due 30 September 2027, once your actual financial results are finalised

Why Bother With a Voluntary Payment?

If it's optional, why would anyone pay it? Simple: interest.

SARS charges interest on underpaid provisional tax if your first and second estimates fell short of your actual tax liability. The third payment gives you a chance to close that gap voluntarily — before SARS calculates it for you with interest attached.

This is especially relevant if:

• Your business had a stronger final quarter than expected
• You underestimated income to preserve cash flow earlier in the year
• Your bookkeeping only caught up with true profitability after year-end
• You want to avoid the penalty-and-interest surprise when your actual assessment is issued

Getting Your Numbers Ready

The challenge with the third payment is timing — you need accurate, finalised figures for the full tax year, which typically means your bookkeeping needs to be buttoned up well before the September deadline. This is where many small businesses fall behind, especially if invoicing, expense capturing, or reconciliations were inconsistent during the year.

Practical steps to prepare:

1. Reconcile your books monthly, not just at year-end — this prevents a scramble in August/September 2027
2. Compare your actual taxable income against the estimates used in your first and second IRP6 submissions
3. Calculate the shortfall (if any) between tax already paid and what your final figures suggest you owe
4. Decide whether a top-up payment makes financial sense given the interest SARS would otherwise charge
5. Keep supporting documentation — invoices, bank statements, expense records — organised and easily accessible

Where One Practice Fits In

Getting to accurate, up-to-date figures is often the hardest part of this whole process. One Practice helps South African small businesses keep their bookkeeping current throughout the year, so when it's time to assess whether a top-up payment is needed, you're working from real numbers rather than guesswork.

Our platform helps you organise income, expenses, and reconciliations so the figures you need for your IRP6 calculations are ready when you (or your tax practitioner) need them. We prepare the numbers — you or your registered tax practitioner take it from there for manual capture on eFiling.

Key Dates to Diarise

| Payment | Deadline | |---|---| | First provisional payment | 31 August 2026 | | Second provisional payment | 26 February 2027 | | Third (top-up) payment | 30 September 2027 |

Mark these in your calendar now, and set a reminder in mid-2027 to start reconciling your full-year figures — waiting until September to think about it leaves little room to catch discrepancies.

Final Thoughts

The third provisional payment won't apply to every business every year, but ignoring it entirely can mean paying more than necessary in SARS interest. The best defence is simple: keep your books accurate and current throughout the year, so when February 2027 rolls around, you're not scrambling — you're simply confirming numbers you already trust.

This article is general information only and does not constitute personalised tax or legal advice. Provisional tax rules, deadlines, and interest calculations can vary based on individual circumstances. Please confirm your specific obligations with SARS, a registered tax practitioner, or the relevant authority before making any payment decisions.