Everyone in South Africa knows that this time of the year is one filled with stress, because it’s tax return season. This is the time when the South African Revenue Service (SARS) opens the filing season and, for a lucky few, pays out tax returns.
For small to medium-sized enterprises (SMEs), it’s important to know the exact dates for the tax calendar. This will ensure you have your documents prepared in time to submit and can then avoid the financial penalties that come with non-compliance.
In this article, we outline the most important dates for businesses in the 2026 tax calendar and what exactly you must submit during the financial year.
1. Value-Added Tax (VAT): The VAT201 Return
VAT is the 15% you add to your sales. Basically, you are a collection agent for SARS, and you will need to give them their money. Using the VAT201 form, you must declare how much VAT you collected from customers minus the VAT paid to your suppliers.
Key factors:
- Current VAT rate: Remains unchanged at 15%
- Changes: As of 1 April 2026, the compulsory VAT registration threshold has more than doubled, increasing to R2.3 million (up from R1 million). This means small businesses earning less than R2.3 million per year are no longer required to register as a VAT vendor.
- Voluntary registration: The minimum turnover threshold required for voluntary registration for VAT has increased to R120 000 (up from R50 000).
- Deadline: For eFiling, returns and payments are due on the last business day of the month following your tax period.
Note: Businesses with taxable income lower than the R2.3 million threshold can deregister for VAT if they do not want to be registered under voluntary registration.
2. EMP201 Returns for Monthly Payroll
Any business that has employees must deduct tax from their salaries and send it to SARS. The EMP201 is a monthly declaration that combines pay-as-you-earn (PAYE) employee tax income, skills development levy (SDL) and unemployment insurance fund (UIF).
Key factors:
- Changes: The 2026 budget increased medical scheme tax credits to R376 per month for the main member and first dependant. Additional dependents increased to R254 per month. Ensure your payroll reflects this so staff receive the correct take-home pay.
- Bottom line on tax brackets: Personal income tax brackets were adjusted by 3,4% for inflation. This ensures your team isn’t taxed more simply because their salaries rose to keep up with the cost of living.
- Deadline: Due on the 7th of every month. If the 7th is on a weekend, payment must be submitted the Friday before.
3. IRP6 Return for Provisional Tax
Provisional tax is just a way for business owners to pay their income tax in “pay-as-you-go” instalments. An IRP6 is the form you use to estimate your profit and pay the tax on it in advance.
Key dates:
- 31 August 2026 (First period): You must pay 50% of your estimated total tax for the 2027 year.
- 26 February 2027 (Second period): This is the final estimate and payment for the year.
- 30 September 2026 (Top-up period for 2025/2026): If you undercalculated for the 2025/26 year, paying by this date helps you avoid backdated interest.
4. EMP501 for Employer Reconciliations
Twice a year, SARS asks businesses to prove that the monthly amounts they paid (the EMP201s) match the actual tax certificates (IRP5s) given to employees. The EMP501 is this final “check-up” form.
Key dates:
- April – 31 May 2026 (Annual filing): Covers the full year just ended (March 2025 – February 2026).
- September – October 2026 (interim filing): The half-year check for the current 2026 year.
Note: SARS now strictly validates Employee Tax Reference Numbers. Submissions with false numbers will be rejected. Make sure you avoid this mistake to avoid potential penalties.
Filing Checklist
The following is a checklist you can use to ensure you are fully prepared for tax season.
Before 28 February 2026
- File and pay your second provisional tax (IRP6).
- Include any capital gains triggered during the year; the gain is taxable when you sign the sale agreement, not on the transfer date.
- Ensure your February EMP201 payroll data is accurate.
- Complete all outstanding VAT201 returns before the year closes.
March 2026
- Submit your February EMP201 by the 6th of March.
- Begin preparing for your annual EMP501 reconciliation. Confirm that all your employees have valid income tax reference numbers on file.
April to May 2026
- Submit your annual EMP501 during the 1 April to 31 May window.
- Reconcile all IRP5/IT3(a) certificates against EMP201 submissions.
- Issue IRP5 certificates to all employees within 60 days of year-end, latest by 29 April 2026.
Note: Every month you must file and pay your EMP201 by the 7th (or the preceding business day). Also, submit your VAT201 by the last business day following your tax period. Lastly, claim employee tax incentive (ETI) on each EMP201.
September 2026
Consider making your voluntary third provisional tax top-up payment by 30 September. This significantly reduces interest on any shortfall between your estimates and the actual assessment.
Why Tax Compliance is Important for SMEs
Tax compliance is vital for SMEs to legally operate, avoid severe penalties, and unlock growth opportunities. Understanding and managing your tax compliance involves several critical elements that can impact your bottom line:
- Avoid penalties: Filing returns late or failing to pay SARS on time results in administrative penalties and interest, which can affect your cash flow.
- Access to funding: Banks and investors require a valid Tax Clearance Certificate as proof of financial health and integrity before providing loans or capital. Lack of a valid tax certificate will result in rejected funding applications.
- Business credibility: Maintaining a clear tax record builds trust with investors, suppliers, clients, and potential corporate partners.
The Small Business Corporation (SBC) Incentive
Understanding your tax eligibility can also open up opportunities for SMEs such as the SBC incentive. SMEs that qualify for this incentive enjoy lower, tiered tax rates, easing the financial burden for growing enterprises.
To qualify to become an SBC, you must meet certain criteria, such as:
- Annual turnover of less than R20 million
- Be a privately held company
- Derive less than 20% of income from investment or personal service activities
All this might be overwhelming, especially if you try to cram it all into one day’s worth of work. Break down your tax activities into manageable, scheduled tasks to ensure you achieve compliance in line with SARS-mandated deadlines.
