SARS Compliance Support for South African Employers
Payroll statutory compliance support, managed through the platform. On the roadmap.
The SARS tax compliance checklist
Most SARS exposure for a small company is not the tax itself, it is the administrative penalty that recurs monthly on a return nobody filed. This checklist covers the registrations, the recurring filings and the record keeping that keep your tax compliance status green. It reflects the position as at August 2026, including the VAT registration threshold change on 1 April 2026. Free to read and free to download.
1. Registrations and entity set up
Registration duties are triggered by conduct, not by choice. Section 234 of the Tax Administration Act makes negligent as well as wilful failure to register an offence.
- Register as an employer within 21 business days
Any company paying remuneration on which employees tax is deductible must register for PAYE within 21 business days of becoming an employer.
Fourth Schedule para 15 - Register for SDL once payroll passes R500 000
The Skills Development Levy is 1 percent of total remuneration, and liability starts once you expect total salaries to exceed R500 000 over the next 12 months.
Skills Development Levies Act 9 of 1999 - Register for UIF contributions
1 percent from the employer and 1 percent from the employee, capped at monthly remuneration of R17 712, so a maximum of R177,12 per party per month.
Unemployment Insurance Contributions Act 4 of 2002 - Appoint and register a public officer
Every company must have a public officer as its representative taxpayer. Not having one, or not telling SARS when it changes, is an offence and commonly blocks eFiling access.
Tax Administration Act s246
2. Monthly and biannual payroll taxes
The Fourth Schedule to the Income Tax Act carries the whole PAYE system, including the 10 percent late payment penalty and the reconciliation penalty of 1 percent per month to a maximum of 10 percent.
- Submit and pay EMP201 by the seventh
The EMP201 declares PAYE, UIF and SDL for the month, due within seven days after the month of deduction. If the seventh falls on a weekend or public holiday, the deadline moves to the last business day before it.
Fourth Schedule para 2(1) - File the interim EMP501 reconciliation
The interim reconciliation covers 1 March to 31 August and reconciles EMP201 declarations, actual payments and certificate values. SARS confirms the window each year, and it has recently run from late September to the end of October.
Fourth Schedule para 14(3) - File the annual EMP501 reconciliation
The annual reconciliation covers 1 March to the end of February. For the year ended 28 February 2026 the window was 1 April to 31 May 2026.
Fourth Schedule para 14(3) - Validate every employee income tax number
From the February 2026 filing season SARS strictly enforces valid income tax reference numbers. Reconciliations without them are rejected, which turns a filing problem into a late submission penalty.
SARS BRS v24.0.2 - Substantiate every ETI claim with real evidence
Contracts and age or wage thresholds are no longer enough. You must show the person actually worked, through job descriptions, task records, hours and leave records.
Interpretation Note 145, 27 July 2026
3. Income tax and provisional tax
Every company is a provisional taxpayer by definition, so there is no opt out. Paragraphs 21 and 23 set the two compulsory payment dates and paragraph 20 the underestimation penalty.
- Submit the ITR14 within twelve months
A company must file its annual income tax return within 12 months after the end of its financial year. The corporate rate is 27 percent for years ending 1 April 2026 to 31 March 2027.
Tax Administration Act s25 - Pay the first provisional tax instalment
Due within six months of the start of the year of assessment, so 31 August for a February year end. The estimate may not be below the basic amount unless SARS agrees.
Fourth Schedule para 21 - Pay the second instalment accurately
Due on the last day of the year of assessment. Below R1 million of taxable income the estimate must reach 90 percent of actual or the basic amount, above R1 million it must reach 80 percent, or a 20 percent underestimation penalty applies.
Fourth Schedule paras 23 and 20 - Consider a third top up payment
A voluntary third payment stops interest running on a shortfall. For a February year end it is due by 30 September.
Fourth Schedule para 23A
4. VAT
Section 23 of the VAT Act creates the compulsory registration duty on both a backward looking and a forward looking test. Section 16 makes a valid tax invoice a precondition for the input tax deduction, not a formality.
- Track taxable supplies against R2,3 million
From 1 April 2026 registration is compulsory once taxable supplies exceed R2,3 million in any consecutive 12 month period, raised from R1 million. Apply within 21 business days.
VAT Act s23(1) - Submit and pay VAT201 on time
For eFiling users the return and payment are both due on the last business day of the month following the tax period. For manual channels the deadline is the 25th.
VAT Act s28 - Hold valid tax invoices before claiming input tax
Input tax may only be deducted where you hold a valid tax invoice with the prescribed particulars. VAT records must be kept for five years.
VAT Act s16(2) and s20
5. Compliance status and record keeping
Section 256 empowers SARS to issue a tax compliance status. Sections 29 to 32 create a standalone record keeping duty that exists whether or not a return is due.
- Keep the tax compliance status green
The TCS PIN is generated on eFiling and lets third parties view live compliance. SARS checks for outstanding returns, outstanding debt without an arrangement, missing registrations and stale particulars. The Tender option has been withdrawn, so use Good Standing.
Tax Administration Act s256 - Retain records for five years
Five years from submission of the return, or from the end of the tax period where no return is required, in original or acceptable electronic form, readily accessible and kept in South Africa unless SARS authorises otherwise.
Tax Administration Act s29, s30 and s32
What SARS non-compliance costs
- Administrative non-compliance penalty: R250 to R16 000 per month depending on taxable income in your last assessment, recurring for up to 35 months per outstanding return. At the top bracket that reaches R560 000 on a single return.
- Percentage based penalties: 10 percent on late PAYE, UIF or SDL, 1 percent per month to a maximum of 10 percent on a late EMP501, 10 percent on late VAT, 10 percent on a late provisional payment, and 20 percent on provisional underestimation.
- Understatement penalty: 10 percent for a substantial understatement, rising to 200 percent for intentional evasion in an obstructive or repeat case.
- Interest: 10,25 percent per annum from 1 March 2026 to 31 August 2026, rising to 10,50 percent from 1 September 2026. Interest is separate from penalties and is generally not remitted on the same grounds.
- Criminal: failing to submit a return, failing to register or update particulars, and failing to retain records are offences, prosecutable where merely negligent, carrying a fine or imprisonment of up to two years.
Get the checklist as a PDF, and early access to the SARS app
Same content as above, laid out as a working document with tick boxes so you can walk it with your bookkeeper or tax practitioner. It includes the recurring deadline calendar. Leave your details and the PDF downloads straight away. We will also let you know when the SARS app opens, before the general release.
We use your details to send the checklist and to tell you when the SARS app is available. We do not sell or share your details. You can ask us to delete them at any time by emailing [email protected]. This checklist is general information about published requirements, not tax advice, and GRC Shop is not a registered tax practitioner firm.
What the SARS app will cover
Planned to support your payroll-related statutory compliance.
- PAYE compliance support
- Skills Development Levy (SDL) support
- UIF compliance support
- Statutory record-keeping
Scope note
This is compliance support, not tax advisory. This app is planned; OHS is live and POPIA is next. If SARS compliance support is your priority, tell us.
SARS questions we get asked
When must I register for VAT?
Registration is compulsory once the value of your taxable supplies exceeds R2,3 million in any consecutive 12 month period, or where there are reasonable grounds to believe it will exceed that figure in the next 12 months. You must apply within 21 business days from the date the threshold is or will be exceeded. The threshold rose from R1 million on 1 April 2026. Voluntary registration is available from R120 000 of taxable supplies, raised from R50 000 on the same date.
What is the VAT rate in South Africa right now?
The standard rate is 15 percent. Increases to 15,5 percent from 1 May 2025 and to 16 percent from 1 April 2026 were announced in the 2025 Budget but were reversed in April 2025 and never took effect. The rate has been 15 percent since 1 April 2018.
When is my EMP201 due each month?
Within seven days after the end of the month in which the amounts were deducted, so normally the 7th. If the 7th falls on a weekend or public holiday, the deadline moves forward to the last business day before it. Late payment attracts a 10 percent penalty under paragraph 6(1) of the Fourth Schedule plus interest.
How much can SARS charge me for a late return?
The administrative non-compliance penalty runs from R250 to R16 000 per month depending on the taxable income in your last assessment, and it recurs for up to 35 months per outstanding return. That is separate from the 10 percent late payment penalties and from understatement penalties of up to 200 percent.
How do I get a tax compliance status PIN?
Request it on SARS eFiling under the Tax Status menu. SARS issues a PIN that a third party can use to view your live compliance status. You will only be compliant if you have no outstanding returns, no outstanding debt without a payment arrangement, are registered for all applicable taxes, and your registered particulars are up to date. The Tender option has been withdrawn, so use Good Standing.
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