By Chris Herbst, Chartered Business Accountant in Practice (CBAP) with CIBA, General Tax Practitioner (GTP) with SAIT, Stellenbosch University. Team registered with SAIT, SAIPA and CIBA.
Most provisional taxpayers know the two IRP6 dates: end August and end February. Fewer use the third one. The IRP6 third payment, often called the top-up or voluntary payment, is the last chance to pay tax for a year before SARS starts charging interest on the shortfall. This guide explains what the third payment is, who benefits from it, when it is due, how to work out the amount and how to pay it on eFiling.
What Is the IRP6 Third Payment?
The IRP6 third payment is a voluntary provisional tax payment made after the end of the tax year to cover any tax the first two payments did not. The SARS Guide for Provisional Tax (GEN-PT-01-G01) describes it as an additional payment, generally known as the third or top-up payment, made to prevent or reduce the interest that arises when the first two provisional payments are inadequate.
Is the third payment the same as the first and second IRP6?
No. The first and second payments are compulsory and are based on an estimate of taxable income for the year. The SARS guide notes that the third payment, unlike the first two, is often based on the actual taxable income for the year, because by September most of your figures for the year that ended in February are known.
Is the third payment a separate tax?
No. Provisional tax is not a separate tax. SARS states it is a mechanism to pay your normal income tax in advance, and the top-up is part of that mechanism. Every provisional payment, including the third, is set off against your income tax when SARS assesses your ITR12 return.
Where does the third payment fit in the provisional tax year?
The table below shows the three payments for the 2027 year of assessment (1 March 2026 to 28 February 2027), using the due date rules on the SARS Provisional Tax page. Where a date falls on a weekend or public holiday, the last business day before it applies.
- First IRP6: Due for 2027: 31 August 2026; Based on: Half the estimated tax
- Second IRP6: Due for 2027: 26 February 2027; Based on: Full-year estimate
- Third top-up: Due for 2027: 30 September 2027; Based on: Actual taxable income
Who Should Make a Third Provisional Tax Payment?
You should make a third payment when your actual tax for the year is higher than the PAYE and provisional tax you have already paid, and your taxable income is above the level at which SARS charges interest on the shortfall.
When does a shortfall attract interest?
Under section 89quat(2) of the Income Tax Act 58 of 1962, interest is payable by a provisional taxpayer when the normal tax for the year exceeds the credit amount. The SARS guide states that for an individual or a trust, this applies where taxable income for the year exceeds R50 000. The credit amount is the sum of the first, second and third provisional payments, the employees' tax (PAYE) paid and allowable foreign tax credits for the year.
Which taxpayers benefit most from a top-up?
The top-up is most useful where income for the year turned out higher than the February estimate. Typical cases are a bonus or commission that was larger than expected, a capital gain on a property or share sale late in the year, crypto disposals, rental income that rose, and freelance or side income that grew after you submitted your second IRP6. Taxable capital gains are part of taxable income, so they belong in the top-up calculation.
Do salaried employees need a third payment?
An employee whose only income is a salary taxed through PAYE is not a provisional taxpayer, and the SARS Provisional Tax page lists the exclusions. If you are not sure whether you must register, our guide on who should register for provisional tax sets out the tests.
When Is the IRP6 Third Payment Due?
For individuals and trusts, the third payment is due by the last business day of September after the February year end. The SARS Provisional Tax page states the third payment may be made by the last business day of September for any person other than a company, and for companies with a February year end; in any other case, within six months of the end of the year of assessment.
What is the third payment date for the 2027 tax year?
The 2027 year of assessment ends on 28 February 2027, so the top-up is due by the last business day of September 2027, which is Thursday 30 September 2027. The SARS guide gives the matching example for the 2026 year: a 28 February 2026 year end, with the third or voluntary payment due on 30 September 2026.
Can I still make a third payment after SARS assesses my return?
The SARS Provisional Tax page describes the third payment as optional after the end of the tax year but before SARS issues the assessment. Once your ITR12 is assessed, any balance is paid as income tax on the assessment, by the due date on the notice.
How Does the Third Payment Reduce Section 89quat Interest?
A top-up paid by the end of September reduces the shortfall on which section 89quat(2) interest is calculated, so less interest runs once the effective date passes. The SARS guide states that the third period payment is made to reduce the interest on underpayment of provisional tax prior to the effective date.
What is the effective date?
The SARS guide defines the effective date, where the year of assessment ends on 28 or 29 February, as seven months after the year end. Interest is calculated from the day after the effective date to the day before the first due date on the assessment. The guide's example: for a February year end with a first due date on the assessment of 1 December, interest on the underpayment runs from 1 October to 30 November.
What interest rate does SARS charge?
SARS charges the prescribed rate of interest, which changes from time to time by notice. The current and historic rates are published in the SARS tables of interest rates. The SARS guide also states that interest on underpayment of provisional tax is not a tax-deductible expense.
Does SARS pay interest if I overpay?
Yes. The SARS tables of interest rates list interest payable on credit amounts (overpayment of provisional tax) in terms of section 89quat(4) of the Income Tax Act, and the SARS guide states that interest is generally payable by SARS from the effective date in the case of a refund. Any excess is refunded after you are assessed.
Does the Third Payment Affect the Underestimation Penalty?
No. The third payment reduces interest, not the paragraph 20 underestimation penalty. The SARS guide states that the penalty compares your actual taxable income with the estimate on your second IRP6, and that the tax it measures against is the employees' tax and provisional tax paid by the end of the year of assessment. A top-up paid in September falls after the year end.
Why does the second IRP6 estimate still matter?
Because the penalty is tested on the second estimate, an accurate February IRP6 is what avoids it. Our guide to the IRP6 underestimation penalty under paragraph 20 sets out the 90% and 80% tests and how SARS remits the penalty.
Does a late third payment attract the 10% late payment penalty?
The SARS guide states that the 10% penalty for late payment of provisional tax applies to the first and second periods. The third payment is voluntary, so there is no late payment penalty for not making it. The cost of not making it is the section 89quat(2) interest on the shortfall.
How Do I Calculate the IRP6 Top-Up Amount?
The top-up is the tax on your actual taxable income for the year, less the rebates, credits, PAYE and provisional payments already made. The SARS Guide for Provisional Tax sets the calculation out in this order:
- Work out the estimated or actual taxable income for the year of assessment, including taxable capital gains.
- Calculate normal tax on that taxable income using the tax tables for the year.
- Deduct the primary, secondary and tertiary rebates under section 6.
- Deduct the medical scheme fees tax credit under section 6A and the additional medical expenses tax credit under section 6B.
- Deduct the employees' tax (PAYE) deducted from your remuneration during the year.
- Deduct the first and second provisional tax payments, if actually paid, and any other top-up payments already made.
- Deduct foreign tax credits under section 6quat.
The result is the top-up payment.
Which documents do I need for the calculation?
Use the same documents you use for your ITR12: IRP5 certificates, IT3(b) investment income certificates, IT3(c) capital gains certificates, retirement annuity and medical aid certificates, rental schedules, business income records and crypto transaction histories.
Should I file my ITR12 before working out the top-up?
Preparing the ITR12 figures first gives the most accurate top-up, because the calculation and the return use the same numbers. Provisional taxpayers have until the provisional taxpayer filing deadline to submit the ITR12; our SARS tax deadlines guide lists the dates.
How to Make the IRP6 Third Payment on eFiling
You make the third payment through the Payments function on SARS eFiling, allocated to your provisional tax account and the correct tax period. The steps below follow the SARS guide on how to eFile your provisional tax return (GEN-PT-01-G02).
Step 1: Check your provisional tax account
Log in to eFiling, click Returns, then Returns Issued, then Provisional Tax (IRP6). On the Provisional Tax Work Page, click Request Statement of Account to confirm what SARS has recorded against the first and second periods.
Step 2: Request the IRP6 for the period, where you submit one
On the Provisional Tax (IRP6) screen, select the year and period from the drop-down menu and click Request Return. Open the return by clicking IRP6 on the work page, complete it and submit it.
Step 3: Create the payment
Click Returns on the top ribbon and Payments on the left menu. Select Payments, Pay Now and Create Additional Payment. Choose Provisional Tax (PROV) as the tax type and Provisional Tax Period Payment as the type of payment.
Step 4: Capture the tax period and amount
Capture your name, tax reference number, the tax period in the format CCYY/NN and the amount. Select Make Payment to pay now, or Save Payment to pay later through your bank.
Step 5: Confirm the allocation
After the payment clears, request a new statement of account and confirm the payment appears against the correct year. SARS states that provisional tax payments cannot be reallocated to different periods or to different taxpayers, so the tax period and reference number must be right the first time. For the full return process, see our walkthrough on how to complete an IRP6 on eFiling.
Common Mistakes With the IRP6 Third Payment
Most top-up problems come from timing and allocation, not from the calculation itself.
- Paying after the end of September. Interest starts on 1 October for a February year end, so a payment in October still leaves interest on the shortfall for the days before it.
- Paying to the wrong tax period or year. SARS cannot reallocate provisional payments between periods, so a payment to the wrong period stays there until assessment.
- Paying to a spouse's or a trust's reference number. Provisional payments cannot be allocated to a different taxpayer.
- Expecting the top-up to remove the underestimation penalty. The paragraph 20 penalty is tested on the second IRP6 estimate and payments made by year end.
- Leaving out capital gains and crypto disposals. Taxable capital gains form part of taxable income, so a top-up that ignores them is short.
- Waiting for the ITR12 assessment. Once SARS issues the assessment, the top-up window has closed and the balance is due on the notice.
How Does the Third Payment Connect to Your Other Returns?
The third payment closes the provisional tax cycle that the first and second IRP6 returns open, and the ITR12 settles it. On assessment, SARS sets off all three provisional payments and your PAYE against the normal tax for the year, refunds any excess and charges any balance.
How do the three IRP6 periods relate?
The first IRP6 pays half the estimated tax for the year, the second brings the payments up to the full-year estimate, and the third tops up to the actual figure. If you are calculating a first payment for the first time, our guide to your first provisional tax calculation starts from the beginning.
Who can submit IRP6 returns and payments for me?
A registered tax practitioner with access to your eFiling profile can prepare and submit IRP6 returns for you. Our guide on who can file provisional tax for you explains how that access works.
Do You Need Help With Your IRP6 Third Payment?
CH Consulting prepares IRP6 calculations, including the September top-up, from the same figures that go into your ITR12, so the payment and the return agree. See how our provisional tax service works, compare the plans on our provisional tax pricing page, or book a call with our team.
