Tax year-end 2026: calendar and checklist for South African SMEs

A single missed deadline can cost your business thousands in automatic penalties.

This guide puts every critical SARS date for the 2025/2026 tax year (1 March 2025 to 28 February 2026) in one place, so you can plan ahead rather than scramble at the last minute.

The stakes are higher this year.

SARS has increased enforcement efforts under initiatives such as Project AmaBillions, with a stronger focus on closing revenue gaps and improving compliance.

More queries, more verifications, and more audits are already filtering through to SMEs.

Getting your deadlines right is no longer just good practice; it’s your first line of defence.

Here’s what we’ll cover:

Provisional tax: the 3 payment dates that anchor the year

Every company and every individual earning income outside of standard employment (above the R95,750 tax threshold for under-65s) is a provisional taxpayer.

You’ll file IRP6 returns via eFiling or the SARS MobiApp, and make 2 compulsory provisional tax payments during the year, with a 3rd optional top‑up payment if necessary.

Your 1st provisional payment was due by 31 August 2025 (shifted to Friday 29 August because the 31st fell on a Sunday).

This covered at least half your estimated total tax for the year.

The 2nd provisional payment falls on 28 February 2026, which is a Saturday, so the effective deadline is Friday 27 February 2026.

This is the big one: you must pay the balance of your estimated tax liability, less your 1st payment and any PAYE credits.

The 3rd top-up payment is voluntary and due by 30 September 2026.

It gives you a chance to reduce interest on any shortfall between your estimate and your actual assessment.

Both IRP6 returns must be filed even if the calculation results in nil tax payable.

If you fail to submit the required provisional tax return, SARS may estimate your taxable income and raise an assessment based on available information, which can trigger underestimation penalties, interest, and further compliance action.

The penalty regime

Late or incorrect provisional tax payments can trigger penalties and interest, calculated in line with SARS’s prescribed rates.

Underestimation penalties may apply if your estimates fall materially below actual taxable income, with additional administrative penalties possible for outstanding returns.

Monthly PAYE via EMP201: the 7th-of-the-month rule

Every employer must submit an EMP201 and pay PAYE, Skills Development Levy (1% of payroll), and UIF contributions (2% total, split equally between employer and employee) by the 7th of the month following each payroll period.

When the 7th falls on a weekend or public holiday, the deadline shifts to the last business day before that date.

For the remainder of this tax year, watch for the February 2026 payroll month: the 7 March deadline shifts to Friday 6 March 2026 because the 7th falls on a Saturday.

All submissions must be electronic via eFiling or e@syFile.

SARS no longer accepts manual, faxed, or emailed forms.

Late payment triggers an automatic 10% penalty on the outstanding amount plus daily interest.

SARS has no discretion to waive interest on SDL or UIF components.

Wilful non-compliance is a criminal offence carrying fines or imprisonment of up to 2 years.

ETI enhancements from April 2025

The Employment Tax Incentive was boosted from 1 April 2025 for employers hiring workers aged 18 to 29.

The maximum qualifying monthly remuneration rose from R6,500 to R7,500, broadening the pool of eligible employees.

In the first 12 qualifying months, the incentive pays up to R1,500 per month for employees earning between R2,500 and R5,499.99. In months 13 to 24, it drops to R1,000.

For employees earning below R2,500, the ETI equals 60% of remuneration in the first year and 30% in the second.

You claim ETI directly through your EMP201 by reducing your PAYE liability.

The programme runs until 28 February 2029.

One critical requirement: your employees must be paid at least the national minimum wage (R28.79/hour from March 2025, rising to R30.23/hour from 1 March 2026) or the entire ETI claim is disqualified.

Employer reconciliation: the EMP501 windows

Twice a year, you reconcile your monthly EMP201 declarations, payments, and employee tax certificates through the EMP501 process.

Getting this wrong has cascading consequences:

• SARS rejects submissions with data errors and treats them as unfiled.

The interim reconciliation (covering March to August 2025) had a submission window from 22 September to 31 October 2025.

The annual reconciliation (covering the full March 2025 to February 2026 period) is expected to open from 1 April to 31 May 2026, consistent with the established SARS pattern.

Final dates are confirmed via the Government Gazette closer to the time.

Employers with more than 50 employees must use e@syFile Employer (now the Thin Client version; the Flex version is being phased out).

Those with 50 or fewer may use eFiling directly.

Late EMP501 submission attracts a penalty of 1% of the annual PAYE liability per month, escalating by 1% monthly to a maximum of 10%.

Mandatory tax reference numbers

This is the biggest change for the February 2026 filing season.

SARS will now reject EMP501 submissions that lack valid income tax reference numbers for all employees.

During the October 2025 interim window, missing numbers only generated warnings.

That grace period is over.

If you have unregistered employees, register them now using Individual or Bundled ITREG on e@syFile, or the Tax Reference Number Enquiry Service on eFiling.

IRP5/IT3(a) certificates must be issued to current employees within 60 days of 28 February (approximately by 29 April 2026) and within 14 days of an employee’s termination.

Employers should ensure employee tax certificates align with an accepted EMP501 submission to avoid later mismatches or corrections.

VAT201 deadlines and the last-business-day rule

VAT remains at 15% for this tax year.

The proposed increase to 15.5% announced in the March 2025 Budget Speech was withdrawn in April 2025 after coalition partners rejected it, and Budget 3.0 (tabled May 2025) confirmed the rate stays put.

The mandatory VAT registration threshold remains at R1 million in taxable supplies over any rolling 12‑month period.

If you file via eFiling, your VAT201 is due by the last business day of the month following your tax period, rather than the 25th that applies to manual filers.

This typically gives you 4 to 6 extra days.

Your filing frequency depends on your VAT category:

• Category A and B vendors file every 2 months (on alternating odd/even month cycles),
• Category C vendors file monthly (mandatory for turnover exceeding R30 million),
• Category D, E, and F vendors file every 6 months, annually, or every 4 months respectively.

The penalty for late VAT payment mirrors the income tax framework:

• an automatic 10% penalty on the outstanding amount plus daily interest at the prescribed rate.

Understatement penalties range from 5% to 200% of the shortfall depending on behaviour, with intentional tax evasion at the extreme end.

Keep an eye on SARS’s VAT Modernisation Project, which is introducing mandatory e-invoicing in a phased rollout targeting full implementation by 2028.

Large taxpayers will go first, with SMEs phased in later.

The legal groundwork was laid in the 2025 Tax Administration Laws Amendment Bill.

If you’re still relying on manual invoicing processes, now is the time to start evaluating digital alternatives.

Filing Season 2026 preview

SARS typically announces Filing Season dates in late June or early July.

Based on the pattern from recent years, auto-assessments should be issued in early to mid-July 2026, with Filing Season opening around 21 July 2026 for non-provisional taxpayers.

The non-provisional filing deadline is expected around 20 October 2026, with provisional taxpayers and trusts filing until approximately 19 January 2027.

Auto-assessments use pre-populated data from IRP5 certificates, banks, medical aids, and retirement funds.

You’ll have 40 business days to review and either accept or file an amended return.

For the first time, eligible and interested provisional taxpayers can now receive auto‑assessments too.

Companies must file annual income tax returns within 12 months of their financial year-end, independent of individual Filing Season.

For companies with a February year-end, this means filing by 28 February 2027.

Starting 1 March 2026, SARS will impose administrative penalties on trusts with both their 2024 and 2025 income tax returns outstanding.

Your year-end checklist

Before 28 February 2026

File and pay your 2nd provisional tax (IRP6).

Include any capital gains triggered during the year; the gain is taxable when you sign the sale agreement, not on transfer date.

Ensure your February EMP201 payroll data is accurate.

Complete any outstanding VAT201 returns before the year closes.

March 2026

Submit your February EMP201 by Friday 6 March.

 Begin preparing your annual EMP501 reconciliation. Confirm all employees have valid income tax reference numbers on file.

April to May 2026

Submit your annual EMP501 during the expected 1 April to 31 May window.

Reconcile all IRP5/IT3(a) certificates against EMP201 submissions.

Issue IRP5 certificates to employees within 60 days of year-end (by approximately 29 April 2026).

Ongoing, every month

File and pay your EMP201 by the 7th (or the preceding business day).

Submit your VAT201 by the last business day of the month following your tax period.

Claim ETI for qualifying employees on each EMP201.

September 2026

Consider making your voluntary 3rd provisional tax top-up payment by 30 September.

This reduces interest on any shortfall between your estimates and actual assessment.

Records

Retain all tax records for at least 5 years from the date of submission.

The Companies Act requires 7 years for company records, and close corporations must keep accounting records for 15 years.

If you receive an audit notification, preserve all records until the process concludes.

Final thoughts

The 2025/2026 tax year demands tighter calendar discipline than most that came before it.

Project AmaBillions has changed the enforcement reality:

• SARS is actively pursuing outstanding debt with expanded capacity and AI-driven risk selection, and even small amounts are being flagged.

The mandatory income tax reference number requirement for EMP501 submissions will catch employers who haven’t prepared.

And the ETI enhancements (qualifying remuneration up to R7,500/month) offer genuine savings for businesses hiring young workers, but only if minimum wage compliance is airtight.

Every deadline in this guide carries an automatic penalty for non-compliance, and interest compounds daily.

Print this calendar, share it with your finance team, and set reminders.

For a comprehensive desktop reference covering current income tax tables, travel and subsistence rates, company car fringe benefit values, UIF and SDL thresholds, medical tax credits, and retirement fund contribution limits, download the free Sage Payroll Tax Pocket Guide 2025/2026.