Provisional tax – impact on salary or wage earners who receive a one-off amount of income without tax deducted
This question we’ve been asked (QWBA) considers the impact of the provisional tax rules on salary or wage earners who receive a one-off amount of income not taxed at source. It replaces QWBA 19/03 Provisional tax-impact on employees who receive one-off amounts of income without tax deducted.
Corrections
On 20 March 2026 a typo in Example 1 on page 11 was corrected. The date "7 May 2023" in the last paragraph under the heading Answer - 2022 tax year was changed to "7 May 2022". The example now reads correctly.
Income Tax Act 2007 – ss RC 2(2), RC 3, RC 4, RC 5, RC 7, RC 9(9), RC 10, RC 12
Tax Administration Act 1994 – ss 3(1) (“new provisional taxpayer”), 120KBB, 120KE