Discover the essential tax and legal considerations for non-residents investing in South African real estate. Learn about exchange control regulations, income tax, capital gains tax, and residency rules in this informative and engaging overview tailored for foreign property investors.

Provisional Tax is a payment system in South Africa that allows individuals and companies to pay their income tax in advance, based on an estimated taxable income. Companies that earn income that is not subject to employee tax are required to register for Provisional Tax and make two payments per financial year, with an optional third payment also available. The tax is calculated based on an estimate of the company's taxable income for the current financial year, which includes all sources of income and deductions. The estimate must not be less than the basic amount, calculated based on the taxable income assessed for the latest preceding year of assessment. Companies that fail to meet their Provisional Tax obligations may be subject to penalties for under-estimation. It is important for companies to understand the Provisional Tax system and seek expert assistance if needed.