Your Tax Deadlines for March 2026

  • 06 March – PAYE submissions and payments
  • 25 March – VAT manual submissions and payments
  • 30 March – Excise duty payments
  • 31 March – End of the 2025/6 Financial year, VAT electronic submissions and payments & CIT Provisional Tax payments where applicable.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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February Provisional Tax Deadline: How to Avoid Stiff Underestimation Penalties

“Today, it takes more brains and effort to make out the income tax form than it does to make the income.” (Alfred E. Neuman, Mad Magazine Mascot)

Provisional tax is among the most confusing aspects of the tax regime – and it’s also the most heavily penalised. There are numerous declarations and payments overlapping throughout each year, not to mention a raft of rules and exceptions.

The next provisional tax deadline for the 2026 tax year (coming up on 27 February 2026) is also the trickiest and most important provisional tax deadline of the year. This is because the income estimates declared must be highly accurate. A stiff 20% under-estimation penalty can apply if the declared income estimate doesn’t fall within 80–90% of the actual taxable income.

Our professional assistance is your ticket to avoiding non-compliance and stiff penalties.

Must you pay provisional tax?
  • Companies are automatically provisional taxpayers.
  • Individuals who receive income other than a salary may also be provisional taxpayers, depending on various criteria. This includes sole proprietors and may include members of CCs and company shareholders / directors that earn income not fully subject to PAYE. SARS places the onus on you to determine if you are liable for provisional tax, so it’s best to check your status with us if in any doubt.
  • Other taxpayers include trusts and any person notified by the SARS Commissioner. Exceptions and thresholds apply in every instance, so be sure to verify with our team of tax professionals.
What is provisional tax?

Provisional tax is not a type of tax, but rather a way of paying an annual income tax liability in two or three payments during a tax year. This prevents taxpayers from facing one large tax bill at year-end when the annual personal income tax (PIT) return or corporate income tax (CIT) return is filed.

Making provisional tax payments allows you to spread the tax liability across the year. But it also creates additional administrative obligations (calculations, returns), and increases the risk of penalties – particularly under-estimation penalties.

Three provisional tax payments each year

The following rules apply to individuals and to companies / trusts with a year of assessment running from 1 March to 28 February:

  • First payment: Due within six months of the start of the year of assessment. For the 2026 year (which commenced on 1 March 2025), this was due end August 2025. This forward-looking payment is based on half of the total estimated tax for the full year, less employees’ tax already paid and any applicable tax credits and rebates.
  • Second payment (due 27 February 2026): This is retrospective and based on the total estimated tax for the full tax year, less provisional tax and employees’ tax already paid in the first period, and any applicable tax credits and rebates. The rules are far stricter with harsh penalties for under-estimating.
  • Third payment (optional): Can be made after the end of the tax year but before the issuing of the annual income tax assessment by SARS each year, typically by 30 September.

Bear in mind that SARS can ask for your estimate to be justified, so you’ll need accurate records of all source documents and calculations used. SARS can even increase the estimate if they’re dissatisfied with your amount, and this is not subject to objection or appeal.

Further penalties to watch out for
  • Late filing: If an IRP6 is filed more than four months after the deadline, SARS will consider a ‘nil’ return to have been submitted. Unless actual taxable income really was zero, an under-estimation penalty will also apply.
  • Interest charges: Interest will be levied on underpayment of provisional tax resulting from under-estimation.
  • Late payment penalty: Not making provisional tax payments on time will result in an immediate 10% penalty, regardless of whether it’s not paid at all or simply paid late.
Rely on our expert assistance

The rules of provisional tax are daunting and confusing, yet SARS holds provisional taxpayers responsible for their tax affairs.

SARS recommends that the provisional tax estimate is determined sensibly and by careful reasoning and judgement, in a mathematical manner, and using experience, common sense and all available information.

Our professional assistance is invaluable as you prepare and review your provisional tax and income tax returns prior to submission. We proactively take care of all necessary steps to correctly calculate estimated taxable income and submit timeously – in the process saving you time, money, and hassle.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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Your Year-End Tax Checklist: Smart Moves Before 28 February

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“The avoidance of taxes is the only intellectual pursuit that still carries any reward. (John Maynard Keynes)

1. Boost your retirement savings

Contributing to a Retirement Annuity (RA) before 28 February can reduce your taxable income and grow your long-term wealth. If you haven’t maximised your annual tax deduction for contributions to retirement funds, this is a good moment to review it. Got any questions – ask us.

2. Top up your Tax-Free Savings Account (TFSA)

Each member of your family (even minor children) can have a TFSA and you can contribute up to R36,000 per year to each account. Interest and dividends paid from and capital growth inside a TFSA are completely tax-free, making it one of the most powerful long-term investment tools available.

3. Consider making a section 18A donation

Donations to qualifying Public Benefit Organisations (PBOs) and some other donees that are approved to issue section 18A receipts, are tax-deductible (up to 10% of taxable income). If you’re planning to give, now is a good time to do so.

4. Review your investment gains and losses

If you’ve realised capital gains this year, you may be able to offset them by realising losses on underperforming investments. This is known as “tax‑loss harvesting” and can help reduce your capital gains tax. If you’re unsure if this applies to you, we can definitely assist. There is also a CGT exclusion (up to R2 million in gains) on the sale of your primary residence so the timing of your house sale may have big tax implications (positive or negative).

5. Check your interest income

South Africans enjoy an annual local interest exemption of R23 800 (R34 500 for individuals 65 or older). If your interest income is close to or above the threshold, it may be worth reviewing where your cash is held and whether a more tax-efficient structure makes sense. Our advice here could be crucial.

6. Gather all your Tax Certificates

Make sure you have the necessary documents from your investment platforms, including:

  • Interest and dividend statements
  • Capital gains summaries
  • RA and TFSA contribution reports

These will make your tax return smoother and help avoid SARS mismatches.

7. Review medical and other allowable expenses

If you’ve had out-of-pocket medical costs or other deductible expenses, gather those records now so they’re ready for your return.

8. Provisional taxpayers: Double‑check your estimate

If you’re a provisional taxpayer, your second payment is due at the end of February. Ensuring your estimate is accurate can help you avoid penalties later.

A stitch in time saves nine

If you’d like help reviewing any of these items or want to explore opportunities specific to your financial plan, we are here to support you.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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Your Tax Deadlines for February 2026

  • 06 February – PAYE submissions and payments   
  • 25 February – VAT manual submissions and payments   
  • 26 February – Excise duty payments             
  • 27 February – VAT electronic submissions and payments, CIT Provisional Tax payments and PIT Provisional Tax payments where applicable.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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Your Tax Deadlines for January 2026

07 January – PAYE submissions and payments

19 January – End of Filing Season 2025 for Provisional Taxpayers and End of Filing Season 2025 for Trusts

23 January – VAT manual submissions and payments              

29 January – Excise duty payments

30 January – VAT electronic submissions and payments & CIT Provisional Tax payments where applicable.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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NPO? NGO? NPC? PBO? What’s the Difference Anyway?

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“A rich man without charity is a rogue; and perhaps it would be no difficult matter to prove that he is also a fool.” (Henry Fielding, English writer and judge)

Across the country, tens of thousands of groups run feeding schemes, environmental projects, schools, clinics, and training centres, often built on passion rather than profit.

But while “NGO” is the word most people use, it’s not actually a legal term in South Africa. Entrepreneurs who fund or collaborate with non-profits need to know what each term really means, because it affects compliance, governance, and whether your donation qualifies for a tax deduction.

Alphabet soup: What does it all mean?

NGO (Non-Governmental Organisation)

NGO is a broad, informal term used for any group doing social good outside of government. It could be a community group, a youth initiative, or a local charity. There’s no single registration for an “NGO” in South Africa and literally anyone can use the label. 

NPC (Non-Profit Company)

Some charitable organisations register as NPCs with the Companies and Intellectual Property Commission (CIPC). This suits organisations that want a more formal company structure, complete with directors and a Memorandum of Incorporation.  

NPO (Non-Profit Organisation)

An NPO is a specific legal status created by the Non-Profit Organisations Act. You need to apply to the Department of Social Development (DSD) with your constitution or founding document. Once approved, you get an official NPO number and a certificate that opens doors which funders, corporates and even banks. Non-Profit Companies (see below) can also apply to be NPOs, in which case both sets of rules apply.

PBO (Public Benefit Organisation)

Both NPOs and NPCs must apply to SARS to become PBOs if they want to unlock the tax benefits available to charitable organisations (more info below). 

 
What’s the point of registering?

Many groups, particularly small ones, will run perfectly well without registering. Registering does, however, bring a number of real advantages.

  • It shows funders and partners that the organisation is credible and accountable.
  • It lets the operators open a business bank account in the organisation’s name.
  • It qualifies the organisation for funding from government, corporates, and the National Lotteries Commission.
  • It’s the first step toward tax exemption.

Any entrepreneurs working with or donating to a cause should always ask for proof of registration as an NPO or NPC.

When does “non-profit” mean tax-free?

Here’s where many people get caught out. Just because an organisation is registered as an NPO doesn’t mean they are automatically exempt from tax. To enjoy tax benefits, like exemption from income tax and giving donors section 18A certificates, the organisation must also apply to SARS for Public Benefit Organisation (PBO) status. (Being granted Section 18A status requires a separate approval on top of PBO status.)

That approval comes with conditions: funds must only be used for approved public-benefit activities, and annual returns must be filed. PBO status will always make an organisation more attractive to donors because their contributions can now become tax-deductible and exempt from donations tax.

How do finances and reporting work?

NPOs

Must keep proper accounting records and submit annual reports to the DSD.

Within six months of their year-end, they must prepare a statement of income and expenditure, a balance sheet, and an accounting officer’s report confirming compliance.  

Must have a committee or board. These individuals carry fiduciary responsibility, meaning they are directly accountable for how the funds are used.

NPCs

Follow company law and must lodge annual returns with CIPC.

An NPC that is also registered as an NPO will also have to comply with the requirements for an NPO. 

Must appoint at least three directors. These individuals carry fiduciary responsibility, meaning they are directly accountable for how the funds are used. 

 

While this might sound like a lot of admin, it protects both sides. Donors get transparency, and the organisation builds a track record for future funding.

Three key questions

Anyone partnering with a non-profit should always review its governance set-up before committing resources and be able to answer the following questions:            

  1. Is it registered with DSD or CIPC or both?
  2. Does it have PBO approval from SARS?
  3. Are its financials current and submitted?

If the answer is “yes” to all three, then you are working with an organisation that’s not just doing good – it’s doing good in the right way.

As your accountants, we can ensure that you’re taking advantage of all the tax benefits available to you.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

© AccountingDotNews

Outstanding Tax Debt? SARS’ Expedited Debt Compromise Ends 31 December 2025

“The South African Revenue Service is always ready to assist taxpayers to fulfil their legal obligations.” (SARS)

Acknowledging that taxpayers often find it difficult to settle tax debt due to financial challenges, SARS has launched an expedited debt compromise process to help eligible taxpayers settle outstanding tax debts swiftly and on more favourable terms.

The normal debt compromise process remains available to all taxpayers, and learnings from this expedited process will be used to enhance the broader system.

What is a debt compromise?

A compromise is a written agreement between SARS and a taxpayer in which SARS agrees to accept a reduced amount as full and final settlement of a tax debt.

Once the taxpayer pays the agreed amount and complies with the terms, SARS waives the balance of the debt. However, if the taxpayer defaults or fails to remain compliant, SARS can reinstate the full debt.

Expedited debt compromise eligibility criteria
  • The process applies to non-disputed tax debts older than 12 months.
  • You must be a client of a registered tax practitioner.
  • Your tax returns must be up to date (even if payment is outstanding).
  • The following exclusions apply: entities subject to specific legal processes (such as liquidations, estates, and business rescue cases), companies that are deregistered, cases subject to criminal investigation and audit, as well as cases within the write-off process, taxpayers who have had a compromise in the past three years, and taxpayers who have the means to pay but refuse to do so.
Submission requirements

Taxpayers applying for the expedited tax debt compromise process must provide comprehensive relevant supporting documentation with their applications, which must be submitted by 31 December 2025.

These documents include:

  • Latest Annual Financial Statements (not older than one year)
  • Last six months’ bank statements
  • Cashflow forecast for 12 months
  • List of Assets and Liabilities at market value
  • Debtors’ age analysis
  • Details of any connected persons
  • Details of assets disposed of in the last three years
  • Disclosure of future or contingent interests in assets
  • Details of assets under the taxpayer’s control (including through trusts)
  • Current and projected income for the next three years
  • Application letter with clear motivation, including the proposed settlement offer amount, and the source of funds to pay the offered amount
  • Collection Information Statement (CIS) request with reasons and proof to compromise the debt.

It is important that disclosures are accurate – if they aren’t SARS might not even consider the application.

SARS has committed to resolving qualifying applications within four weeks, using dedicated teams and enhanced workflow management.

Approved compromise settlements may be paid either in full (once-off payment), or in instalments as agreed by SARS.

Act now to avoid escalation

From 1 January 2026, SARS will escalate enforcement against taxpayers who remain non-compliant and have not applied for compromise. Such enforcement may include civil judgments against the taxpayer, writs of execution, collection of money from third parties such as banks, attachment of taxpayer assets, holding directors or members personally liable for the debt, sequestration or liquidation of the taxpayer, or preservation of assets against the debt. To support this intensified enforcement, SARS is engaging 260 legal collectors and 30 legal practitioners.

If you are struggling with long-overdue tax debt, this expedited tax debt compromise process may offer your best chance to finally resolve it – on favourable terms, nogal.

Contact us without delay, as applications close on 31 December 2025 and can only be submitted by registered tax practitioners.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

© AccountingDotNews

Moving from Freelancer to Employer: The Complete Guide

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“You can dream, create, design and build the most wonderful place in the world, but it requires people to make the dream a reality.” (Walt Disney)

Faced with rising demand, every successful solo-business person or freelancer will start wishing they had someone around who could help. But deciding to hire means planning for ongoing salary costs, statutory contributions, written contracts and record-keeping. Do it deliberately, with preparation and you will gain capacity and potentially, increased profit. Do it without preparation and you can pick up expensive legal and tax problems.

When’s the right time?

First, make a list of tasks you believe you could hand over. Then look for areas that could be improved if you had someone to help with them. For example, if admin, scheduling or basic service work is stopping you from completing billable hours, then that’s a clear sign that something needs to change. You may want to consider hiring if you find yourself regularly turning away clients, or when your quality slips because you are over-stretched.

You should also consider whether you have a steady pipeline that has areas of potential growth. If the need is temporary, a contractor might be a better bet.

Taking that next step

If you have decided to hire, then the next step is calculating just how much you can afford to pay. A salary is not just the monthly wage. You need to include a budget for additional costs you may need to carry, like equipment, training and the chance that the hire won’t be productive from the outset.

Who to hire first

When choosing who to hire, you should closely examine just where you’re getting stuck and then look for an employee who removes the biggest bottleneck. Common first hires include an administrative assistant to help with invoicing, scheduling and emails and a junior specialist or apprentice who can do the routine parts of your core service. 

Your job advert should cover that bottleneck and list the main tasks and skills required. You should avoid the temptation of writing vague or overloaded job descriptions in the hope of finding a jack-of-all-trades. While these people may exist, they won’t be looking at entry-level jobs.

Key registrations as an employer

Before the first payday, you will need to register as an employer with SARS so you can withhold PAYE (pay-as-you-earn) tax.

You will also need to register with:

  • The UIF (Unemployment Insurance Fund) where both employers and employees contribute 1% of pay
  • The Compensation Fund (COIDA), which covers workplace injuries
  • If your annual payroll exceeds R500,000 you must register for and pay the Skills Development Levy (SDL) – 1% of payroll

After that, you should set up your payroll processes as these need to be in place before the first pay run. Payroll mistakes are common and costly and your accountant (that’s us) can help you to set these up correctly.

Contracts and labour law basics

Every employee should ideally have a written contract that sets out salary, hours, duties, leave and notice period. Even small, first-time employers must follow The Basic Conditions of Employment Act (which sets minimums for working hours, leave, and overtime) and the Labour Relations Act, which governs fair dismissal procedures and dispute resolution.

If you need help, ask us.

Tax obligations and paperwork

As an employer you must deduct PAYE from salaries and submit monthly EMP201 returns to SARS, pay your share of UIF and submit monthly UIF returns, pay SDL if you meet the threshold and submit the relevant returns, issue IRP5s to employees at year-end and reconcile with SARS (EMP501).

While this may sound like a lot, as your accountants, we are here to help with it all.

Legal structures

Now might also be the time to restructure the way you do business. A sole proprietor can hire staff, but you remain personally liable for the business and any mistakes your employees make can become a very real and very personal problem. A private company (Pty) Ltd meanwhile separates business liabilities from personal assets and may be a sensible step once turnover and payroll grow. You can register a company with CIPC if you want that separation. Other options include a partnership and a trust. Not sure which to choose? Ask us.

Last word

This may all sound like a lot, but try not to get bogged down in the details. Hiring is a practical step toward growth. It adds cost and complexity, but the right staff member can free you up to bring in more work, raise standards and, ultimately, build a business that lasts. Plan, register, document and manage carefully, and your first employee will be a value-add rather than a risk.

And remember – we are here to help with all of the technical aspects.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

© AccountingDotNews

Your Tax Deadlines for December 2025

  • 05 December – PAYE submissions and payments
  • 24 December – VAT manual submissions and payments
  • 30 December – Excise duty payments
  • 31 December – VAT electronic submissions and payments & CIT Provisional Tax payments where applicable.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

© AccountingDotNews

Surviving Trust Tax Season 2025 – And Beyond

“Trustees remain accountable for all tax matters of a trust, regardless of the economic activity of the trust.” (SARS)

The official trust filing season for the 2025 year of assessment is now open for both provisional and non-provisional taxpayers – and SARS has issued stern warnings to trustees to fulfil their tax obligations. 

Who must file trust tax returns? 

 A trust is included under the definition of a “person” in terms of the ITA (Income Tax Act no.58 of 1962) and is therefore regarded as a taxpayer. 

All South African trusts, including resident and non-resident trusts, that are registered for income tax, must file a tax return annually, even if the trust is not economically active. 

A trustee is the representative taxpayer of a trust. Trustees or representatives must register the trust for income tax and file the required tax returns annually. Alternatively, a registered tax practitioner can be appointed as the representative taxpayer.

What must be done?

 Taking into account recent changes to the legislation, trustees must submit their returns for the 2025 year of assessment and file the mandatory supporting documents listed further below. 

Recent legislative changes
  • The “flow-through” principle is now limited to resident beneficiaries, so all amounts vested to non-resident beneficiaries are taxable in the hands of the trust. This also affects the submission requirements for provisional tax (IRP6).
  • Foreign tax credits for taxes paid on income or capital gains earned in a foreign jurisdiction can now be used to prevent double taxation.
  • From the 2025 tax year onwards, unused foreign tax credits will be carried forward automatically to the subsequent years of assessment, up to a maximum of six years.
  • The Section 12H Learnership Agreement is extended to 31 March 2027.
  • The definition of a trust is updated to include collective investment scheme portfolios.
  • SARS has issued new rules on how losses relating to distributions are limited under section 25B.
Return submissions

The final deadline for the submission of provisional and non-provisional Trust Income Tax Returns (ITR12Ts) is 19 January 2026.

Mandatory supporting documents
Required DocumentsDetails
Trust instrumentLatest deed or will
Certain transactions and financial flowsIncome sources and distribution of income; proof of any tax credits
Financial informationFinancial Statements/Annual Administration Account
Parties connected to a trustBeneficial-ownership document, including detail per entity listed
Other documentsLetters of Authority and Minutes and Resolutions of trustee meetings
Foreign trust document (if applicable)Controlled Foreign Company (IT10)
Mining document (if applicable)Mining Schedule A and B

Source: SARS

File on time!

Trustees and administrators should take note that all the return submissions and supporting documents are due by 19 January 2026 – just days into the new year.

Submitting within the deadlines is necessary to comply with SARS regulations. Late submissions can lead to administrative penalties, interest charges, and additional steps.

What else must be done?

Because a trust is also a provisional taxpayer, trustees should be aware that a trust is further required to submit provisional tax returns (IRP6) twice a year in August and February.

In addition, trustees are also required to submit an IT3(t) third-party data return that provides details of amounts vested to beneficiaries. 

Finally, all income derived from a trust must be declared by any resident beneficiaries of trusts in their own income tax returns.

Looking ahead: Key tax dates for trusts
  • 19 January 2026: Final deadline for provisional and non-provisional trust tax return (ITR12T) submissions.
  • 28 February 2026: Second provisional tax payment for the 2026 assessment year.
  • 31 August 2026: First provisional tax payment for the 2027 assessment year.
  • September 2026 (date TBC): Opening date for Income Tax Returns for Trusts (ITR12T) submissions for 2026.
  • 30 September 2026: Deadline for IT3(t) return submissions for trusts which declare amounts vested to beneficiaries’ income.
  • 30 September 2026: Top-up provisional tax payment for the 2027 assessment year.
Consequences of non-compliance

SARS takes a zero-tolerance approach to taxpayers who do not register for the applicable tax, file tax returns, declare income accurately, or pay their tax debt. 

Non-compliance with these obligations is a criminal offence and will attract penalties and interest.

Surviving Trust Tax Season 2025 and beyond

 Never fear! Our team is well experienced in keeping trusts compliant throughout the year. We don’t just contain costs and prevent hassles with the taxman, we also provide peace of mind. 

If you need assistance meeting the next trust tax deadline on 19 January 2026, simply reach out to us. It’s the easiest way to survive this trust tax season, and those ahead. 

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

© AccountingDotNews

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