4 tips for businesses to effectively manage Tax Year-End requirements
Get four tips to help you when you’re preparing for Tax Year-End.
Tax Year-End. There’s nothing quite like the sigh of relief when everything is submitted correctly and compliantly.
But it’s the process of getting there that makes some businesses squirm.
In this article, we go through his top tips on preparing for Tax Year-End 2026 (the 2025/26 payroll year runs 1 March 2025 to 28 February 2026).
Here’s what we’ll cover
Payroll tax pocket guide 2025/26
A complete guide for payroll and HR professionals navigating the latest legislative updates in South Africa.
1. Start with payroll reconciliation
Have accurate employee data ready to avoid missing SARS deadlines or submitting incorrect submissions.
SARS uses IRP5/IT3(a) certificates to pre‑populate returns and match your payroll. Issue IRP5/IT3(a) within 60 days after year‑end (or 14 days after an employee leaves).
So, make sure data for salaries, contributions, bonuses, fringe benefits, and anything payroll-related is up to scratch.
2. Stay proactive with PAYE and UIF data
Reconcile monthly EMP201 values, submit the annual EMP501 accurately, and resolve exceptions early.
For the 2026 Employer Filing Season, valid employee Income Tax Reference Numbers are mandatory.
If they’re missing or invalid, your submission will be rejected—so check and update your employee records before you file.
Payroll tax pocket guide 2025/26
A complete guide for payroll and HR professionals navigating the latest legislative updates in South Africa.
3. Put on your VAT hat
Preparation is your ultimate secret weapon.
You’ll want to start with bank reconciliation and work your way toward reconciling negative and old debtors and creditors statements.
On the invoice basis, you account for VAT at the time of supply, whether or not the customer has paid.
If a debt becomes irrecoverable and you write it off, you may deduct the VAT under the bad‑debt rules.
Separately, if you’ve claimed input VAT on a supplier’s invoice but haven’t paid within 12 months, you must make an output tax adjustment (section 22(3)).
Regarding creditors, it’s vital to collect statements and compare them to the balance in your accounting system to ensure you haven’t forgotten to capture anything.
Make sure you have your VAT, bank, debtor, and creditor reconciliation down to a T by the time Tax Year-End arrives.
4. Get the facts for company tax
For a February year‑end, your second provisional (IRP6) is due by 28 February; the first was due by 31 August; your optional third/top‑up is due by 30 September.
Different year‑ends follow the same rule (last day of the year of assessment)—adjust your calendar accordingly.
As for company tax, ensure all the relevant bank, debtor, and creditor reconciliations are in.
Don’t forget about depreciation journals and interest in capital splits. Your accountant may deal with it, but it’s still important when calculating your monthly company or provisional tax.
In addition, be careful how you spend your money before tax season, as SARS is more likely to make full deductions on smaller expenses than big assets.
Remember, preparation is golden. If you have all your ducks in a row, tax season will be a breeze.
Editor’s note: First published January 2024; updated for Tax Year-End 2026. Check the SARS Reconciliations page for annual EMP501 submission dates when announced.
