SARS Provisional Tax Notice 202701: 10 Days to Act

Quick answer: SARS is sending notices to companies that have not submitted their 202701 provisional tax return (IRP6). You have 10 business days to submit before SARS raises an estimated assessment under section 95 of the Tax Administration Act — an instant company debt you cannot object to. Submit on eFiling now.

If a SARS provisional tax notice for period 202701 has just landed in your company’s eFiling profile or email inbox, treat it as the final warning it is. SARS is currently issuing these notices to companies that missed the first provisional tax deadline of the 2027 tax year, and the message is blunt: submit the outstanding IRP6 return within 10 business days, or SARS will estimate what it thinks you owe and turn that estimate into official company debt. Once that estimated assessment exists, you cannot object to it — and penalties and interest start stacking up on top. This guide explains exactly what the notice means, what happens if you ignore it, and the steps to fix it today.

SARS provisional tax notice 202701 - tax return deadline forms, glasses and calculator — SARS provisional tax deadlines are enforced. Image: DPP Business and Tax via Flickr, licensed CC BY 2.0.

💡 What Is Provisional Tax? (Simple Explanation)

Provisional tax is not a separate tax. According to SARS, it is simply a way of paying your normal income tax in advance, in instalments, so that your company does not end up with one massive tax debt on assessment. The payments are based on your estimated taxable income for the full year of assessment, and you declare that estimate to SARS on a return called an IRP6.

Every company that is registered for corporate income tax is a provisional taxpayer. There are no exceptions for dormant or loss-making companies: SARS requires an IRP6 return for the first and second period even if the amount payable is nil. A nil return still has to be submitted.

First period: due within six months of the start of your company’s financial year. For a February year-end, that is 31 August.
Second period: due on the last day of the financial year. For a February year-end, that is the last business day of February.
Third period (optional top-up): a voluntary payment after year-end that reduces interest if your first two payments were too low.

On final assessment, the provisional payments you made are credited against your company’s real income tax liability for that year.

🚨 Why Your Company Received a SARS Provisional Tax Notice for 202701

The period code on the notice tells you exactly what SARS is looking for. 202701 means the first provisional period of the 2027 tax year. For a standard company with a February year-end, the 2027 year of assessment runs from 1 March 2026 to 28 February 2027, and the first IRP6 — with payment — was due on 31 August 2026.

If SARS has no 202701 IRP6 on record for your company, its system flags the company as non-compliant and issues the SARS provisional tax notice you received. The notice gives you 10 business days to submit the outstanding return. This is the same compliance pattern SARS follows with outstanding corporate income tax returns: a system-generated final demand first, and automated consequences once the deadline in the demand expires.

Important: SARS already knows your company exists and is active. Ignoring the notice does not make it go away — it starts the next, far more expensive step.

⚠️ What Happens If You Ignore the Notice

If the 10 business days pass with no return, SARS is empowered by section 95 of the Tax Administration Act to raise an estimated assessment when a taxpayer does not submit a return. Here is what that means in practice:

SARS estimates your tax for you. The estimate uses the information SARS has — your company’s history, prior assessed income and third-party data — and it is rarely in your favour.
You cannot object to it. An estimated assessment raised under section 95(1)(a) or 95(1)(c) is not subject to objection or appeal. The only way forward is to submit the outstanding return and request a suspension of payment within 40 business days of the assessment.
It becomes company debt immediately. The estimated amount is due and payable. SARS’s debt collection processes — including demands, and ultimately third-party appointments against your company’s bank account — can follow.
Penalties pile up. A 10% late-payment penalty applies to provisional tax not paid on time (paragraph 27 of the Fourth Schedule), interest runs on underpaid provisional tax, and administrative non-compliance penalties of between R250 and R16,000 per month can be imposed for outstanding returns, recurring for every month the non-compliance continues.
Your estimate can be increased. Under paragraph 19(3) of the Fourth Schedule, SARS can ask you to justify any estimate — and if it is not satisfied, it can increase the estimate to an amount it considers reasonable. That increase is not subject to objection and appeal either.

In short: ten business days of admin today is far cheaper than an estimated assessment, penalties, interest and a debt-collection fight later.

🧾 Real-Life Scenario: The Cost of One Missed IRP6

Consider a typical example. Thabo runs a renovation company in Centurion with a February year-end. Based on his management accounts, the company’s estimated taxable income for the 2027 year is about R1,800,000. At the 27% corporate rate, that is roughly R486,000 in tax for the year, so his first IRP6 — about R243,000 — was due on 31 August 2026.

Thabo was busy on site, missed the deadline, and ignored the SARS notice that followed. Ten business days later, SARS raised an estimated assessment. Using the company’s older, higher figures, SARS estimated taxable income of R2,400,000 — a first-period assessment of around R324,000. A 10% late-payment penalty added roughly R32,400 on top, and interest started running from the original due date. Administrative penalties began recurring monthly for the outstanding return.

The worst part for Thabo: he could not simply object to the estimated assessment. He still had to prepare and submit the correct 202701 IRP6, request a suspension of payment, and then negotiate the difference — all while the estimated debt sat on the company’s account and damaged its tax compliance status, which he needs for tender applications. One afternoon on eFiling in August would have prevented the entire chain of events.

This scenario is illustrative, but the mechanics — the estimate, the 10% penalty, the interest, the monthly admin penalties and the blocked objection — are exactly how the Tax Administration Act works.

✅ What To Do Within Your 10 Business Days

Log in to SARS eFiling today. Open the Returns section and select Provisional Tax (IRP6). If provisional tax is not activated on the company profile, activate it under User > Tax Products first.
Request the IRP6 for the correct period: tax year 2027, first period (202701). Do not submit a 202602 or 202702 return by mistake.
Prepare a reasonable estimate of the company’s taxable income for the full 2027 year, using actual results to date plus a realistic projection of the months still ahead. Keep your workings — SARS can ask you to justify the estimate.
Submit the return even if the amount payable is nil. A nil IRP6 still satisfies the notice.
Pay what is due via eFiling or EFT, using the 19-digit payment reference number on the IRP6 payment advice. Bank payments can take two to five days to clear — do not wait for day ten.
Check the company’s other returns while you are there. An outstanding IRP6 often means the ITR14 or other periods also need attention, and each one carries its own penalties.
Get help if you are stuck. A practitioner can submit on the company’s behalf quickly — see how Admin Boss can help below.

📅 Provisional Tax Deadlines at a Glance (2027 Tax Year)

For companies with a February year-end (the 2027 year of assessment runs 1 March 2026 to 28 February 2027):

Period	What is due	Deadline
First period (202701)	IRP6 return + payment of half the estimated annual tax	31 August 2026 (passed — act now if missed)
Second period (202702)	IRP6 return + balance of the estimated annual tax	26 February 2027 (last business day of February)
Third period (optional)	Voluntary top-up to reduce interest on underpayment	30 September 2027

If your company’s financial year ends in a different month, the first period is due six months after the start of the financial year, and the second period on the last day of the financial year. For example, a June year-end company’s first 2027 IRP6 falls due on 31 December 2026.

❓ Frequently Asked Questions

📚 Key Terms Explained

Provisional tax: paying your normal income tax in advance, in instalments during the year, based on estimated taxable income. Not a separate tax.
IRP6: the SARS return used to declare your provisional tax estimate for each period.
Year of assessment: your company’s tax year — for most companies it matches the financial year (often 1 March to end February).
Period 202701: tax year 2027, first provisional period.
Estimated assessment: an assessment SARS raises under section 95 of the Tax Administration Act when a return is not submitted. It creates debt and cannot be objected to.
Administrative penalty: a fixed monthly penalty (R250 to R16,000, depending on taxable income) for outstanding returns, recurring until you comply.
Suspension of payment: a formal request asking SARS not to collect a disputed or estimated debt while you submit what is outstanding.

🔗 Related Admin Boss Guides

🌐 Official Sources and Further Reading

📞 Do Not Let the 10 Days Run Out

An estimated assessment turns a forgotten form into company debt that you cannot object to — with penalties and interest on top. If your company received a SARS provisional tax notice for period 202701, the cheapest and fastest fix is to submit the IRP6 now. Admin Boss helps South African companies with urgent SARS submissions, provisional tax, outstanding returns and full tax compliance — contact the team today and get compliant before SARS estimates your tax for you.

Last reviewed: 24 September 2026 — checked against official SARS guidance and the Tax Administration Act. This article is general information, not professional tax advice for your specific circumstances.