Tax Deadlines in South Africa: A Comprehensive Guide

Tax compliance is a critical aspect of financial responsibility for individuals and businesses in South Africa. The South African Revenue Service (SARS) has established a series of deadlines throughout the year that taxpayers must adhere to, ensuring the efficient collection of revenue necessary for public services and infrastructure. This article outlines the key tax deadlines, helping taxpayers stay informed and compliant.

1. Personal Income Tax 

For individual taxpayers, the tax year runs from March 1 to the end of February the following year. Key deadlines for filing income tax returns vary each year. The filing season for FY 2024 is as follows:

 

Provisional tax is a method of paying income tax in advance to prevent a large tax liability at the end of the tax year. It applies to any person who earns income other than a salary. The deadlines are:

• First Payment: 31 August – This is based on estimated taxable income for the first six months of the tax year.
• Second Payment: 28/29 February – This covers the second half of the tax year and must account for any underpayment or overpayment from the first period.
• Third Payment (Optional): 30 September – This is voluntary but allows taxpayers to settle any shortfall after the tax year-end and before SARS imposes interest on the outstanding amount.

 

VAT is a consumption tax levied on the value added to goods and services. Businesses registered for VAT must submit returns and payments according to their VAT periods, which can be monthly or bi-monthly. The deadlines are:

• Monthly VAT Returns: 25th of the following month for manual submissions and payments, and the last business day of the month for electronic submissions and payments. For example, the VAT return for January is due by 25 February.
• Bi-monthly VAT Returns: The 25th or the last business day of the second month following the VAT period. For instance, the VAT return for January and February is due by the end of March.

 

Employers are required to withhold PAYE tax from employees’ salaries and remit these amounts to SARS on a monthly basis. The deadlines for PAYE submissions are:

• Monthly PAYE Submissions: 7th of the following month, or the last business day before the 7th. For example, the PAYE for January salaries is due by 7 February.
• Annual Reconciliation (EMP501): 31 May – Employers must reconcile their PAYE, UIF, and SDL contributions for the tax year, submitting this reconciliation to SARS along with employees’ IRP5 certificates.

 

Companies must adhere to several deadlines throughout the year. 

• Provisional Tax Payments: Similar to individual provisional taxpayers, companies must make two provisional tax payments:
  • First Payment: Within six months from the start of the company’s financial year.
  • Second Payment: By the end of the company’s financial year.
  • Third Payment (Optional): Six months after the company’s financial year-end.
• Annual Tax Return (ITR14): Companies must submit their annual income tax return within 12 months of the end of the financial year.

 

Dividends tax is a withholding tax on dividends paid by South African companies to shareholders. The deadline for dividends tax is:

• Payment and Submission: By the last day of the month following the month in which the dividend was paid.

Staying Compliant

Staying compliant with SARS deadlines is crucial to avoid penalties and interest charges. Here are some tips for managing your tax responsibilities effectively:

• Stay Informed: Keep up to date with changes in tax legislation and deadlines by regularly visiting the SARS website or consulting with a tax professional.
• Use eFiling: Register for SARS eFiling to manage your tax submissions and payments online. eFiling provides reminders and a convenient way to keep track of deadlines.
• Keep Accurate Records: Maintain thorough records of all income, expenses, and tax-related documents to ensure accurate and timely submissions.
• Consult a Tax Professional: For complex tax matters, seek advice from a qualified tax practitioner to ensure compliance and optimize your tax position.

By adhering to these deadlines and implementing effective tax management practices, taxpayers can ensure they meet their obligations and avoid unnecessary penalties.