Missing a SARS (any tax) deadline is an expensive mistake. Penalties are triggered the moment it is late and then interest accrues on top of that at the prescribed rate from the day a submission or payment is late. For a South African SME owner who is already managing cash flow pressure, an unexpected SARS bill caused by a missed deadline is exactly the kind of avoidable crisis that good financial management is designed to prevent.
Here is a plain-language reference guide and tax calendar to the key tax obligations and SARS submission dates that South African SME owners need to manage throughout the financial year. Keep it. Review it often.
Important note: tax legislation and deadlines change from time to time. The dates and rules in this post reflect the standard annual cycle for the tax year as published by SARS. Always confirm current deadlines with your accountant or tax specialist or directly on the SARS website at sars.gov.za before submitting or making payment.
Key tax dates at a glance
| Tax obligation | Frequency | When it is due |
| VAT201 return and payment | Every 2 months | Last business day of the month following the end of the VAT period. For example, the March to April period is due by 31 May. |
| PAYE, UIF and SDL (EMP201) | Monthly | 7th of the following month. Or the last business day before the 7th. |
| Provisional tax – First | Once per year | Six months into your financial year. For a February year-end business, this is 31 August. |
| Provisional tax – Second | Once per year | At your financial year end. For a February year-end business, this is 28 or 29 February. |
| Provisional tax – third or voluntary payment | Once per year | Within six months of your financial year end. This optional top-up avoids interest on any underestimation. |
| EMP501 reconciliation – interim | Twice per year | 31 October (covering the March to August period). This date is set by SARS and may change. Please confirm this. |
| EMP501 reconciliation – annual | Twice per year | 31 May (covering the September to February period). This date is set by SARS and may change. Please confirm this. |
| Annual income tax return (ITR14 for companies) | Once per year | Within 12 months of the financial year end. This date is set by SARS and may change. Please confirm this. |
VAT submissions and payments
If your business is registered for VAT, you are required to submit a VAT201 return and make payment according to your category. The most common is every two months which is Category A
The categories are:
A – Every 2 calendar months.
| Category | Period length | Due date |
|---|---|---|
| A | 2 months | Last Business Day of following month. Ending on the last day of January, March, May, July, September and November. |
| B | 2 months | Last Business Day of following month. Ending on the last day of February, April, June, August, October and December. |
| C | 1 month | Last Business Day of following month. |
| D | 6 months | Last Business Day of following month. Ending on the last day of February and August (or any other month were written application is made to the Commissioner and approved) |
| E | 12 months | Last Business Day of following month. Ending on the last day of the vendor’s year of assessment (or any other month were written application is made to the Commissioner and approved) |
The most common is category A and B.
Your return and payment are due by the last business day of the month following the end of each VAT period. So your March to April return and payment are due by 31 May. Your May to June return is due by 31 July. This pattern continues throughout the year.
Having a tax calendar and integrating it into your business calendar and budget is the best way of keeping on top of your tax deadlines
All VAT 201 returns are submitted and pay via SARS eFiling.
Under the Value-Added Tax Act 89 of 1991, late VAT submissions attract a 10% penalty on the VAT outstanding for the period, plus interest at the SARS prescribed rate. Repeated late submissions can result in SARS issuing an estimated assessment, which is almost always higher than your actual liability and requires a formal dispute process to challenge.
PAYE, UIF and SDL
If your business employs staff, you are required under the Income Tax Act 58 of 1962 to deduct Pay As You Earn (PAYE) from employee remuneration each month according to the SARS tax tables. You are also required to deduct the employee’s Unemployment Insurance Fund (UIF) contribution of 1% of gross remuneration (up to the UIF ceiling) and add a matching 1% employer contribution. The Skills Development Levy (SDL) of 1% of total payroll is payable by the employer once your annual payroll exceeds R500 000.
All three amounts, together with your EMP201 declaration, must reach SARS by the seventh day of the month following the payroll month. If the seventh falls on a weekend or public holiday, the due date moves to the preceding business day.
This means your January payroll deductions must be submitted and paid by 7 February. February deductions by 7 March. The pattern continues throughout the year without exception.
Any SARS deadline is not a suggestion. It is a hard deadline with a 10% penalty and prescribed interest for late payment. Build your payroll processing cycle around it, not around it as a target.
Provisional tax
If your business is a company, or if you are an individual with income from sources other than a salary alone, you are a provisional taxpayer under the Income Tax Act. Provisional tax requires you to estimate your annual taxable income and make two advance payments during the year, with a potential voluntary top-up within six months of year end.
The first provisional tax payment covers the first six months of your financial year. For example a business with a February year end, this payment is due on 31 August. The second payment is due at your financial year end, an example being 28 or 29 February.
Accurate provisional tax estimation requires current, reliable management accounts. A business owner who is estimating their taxable income without monthly financial data is significantly exposed to underestimation risk. Underestimation can lead to interest on the under estimated amount. A good estimation amount is within 5% of the final amount to be submitted in your tax return. The later you submit your return, the more accurate your estimation will be.
Annual income tax return
Your company’s annual income tax return (ITR14) must be submitted within 12 months of your financial year end. A company with a February year end has until the end of February the following year to submit.
The annual return is based on your audited, independently reviewed or compiled financial statements. Getting your year-end accounts finalised promptly after year end is not just good practice. It is a compliance requirement that affects your submission deadline. Why wait longer than you have to?
The EMP501 reconciliation
The EMP501 is a bi-annual reconciliation of all PAYE, UIF and SDL deducted and paid during the period. It must reconcile precisely to the sum of individual employee tax certificates (IRP5s) issued for the period.
The interim reconciliation covers the March to August period and is due by 31 October (date may change). The annual reconciliation covers the full March to February tax year and is due by 31 May (date may change). Errors in the EMP501 result in incorrect IRP5 certificates being issued to employees, which creates problems for their personal tax returns and potential SARS queries for your business.
Penalties for missing deadlines
| What triggers it | The consequence |
| Late VAT201 submission or payment | 10% penalty on the VAT outstanding for the period, plus interest at the SARS prescribed rate from the date payment was due. |
| Late PAYE, UIF or SDL payment | 10% penalty on the outstanding amount, plus interest at the SARS prescribed rate. |
| Underestimation of provisional tax | An underestimation penalty apply. Interest also applies. |
| Failure to submit EMP501 | Administrative non-compliance penalties under the Tax Administration Act. These accrue monthly and can become significant if the submission remains outstanding. |
| SARS estimated assessment | Where submissions are repeatedly late or missing, SARS may issue an estimated assessment, which is almost always higher than the actual liability and requires a formal objection process to dispute. |
How to stay on top of your tax calendar
The most practical way to manage your tax calendar is to build each submission and payment date into your business calendar at the start of the financial year, with a reminder at least five business days before each deadline. This gives you time to prepare, review and submit without rushing.
Submitting your payment late may result in the payment missing the deadline on the last day and then the penalty and interest begins again.
Good practice is to submit your returns at least 24 hours before the deadline date
In Xero, your VAT return is prepared from your live reconciled data. When your books are current, preparing your VAT201 is a matter of running the Tax Activity report and checking the figures rather than reconstructing transactions from scratch. This is one of the most direct practical benefits of keeping your Xero account up to date throughout the year.
Not sure whether your tax submissions are up to date? Book a free discovery call with Bruce and let us review your compliance position and put this tax calendar in your diary!
About the author
Bruce is the founder of BC Accounting Services (BCAS), a Xero Partner and Certified Adviser based in South Africa. He works as an accountant and tax practitioner with SME owners and growing businesses to build financial clarity, strategic direction and measurable performance through the PCP Method: Purpose, Clarity, Performance.
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