One of the biggest sources of stress for South African business owners is the tax calendar. Missing a SARS deadline does not just mean a penalty — it can trigger interest charges, audits, and in serious cases, criminal prosecution. Understanding exactly when each tax obligation is due puts you in control of your compliance.
VAT Returns: Bi-Monthly Submissions
If your business is VAT-registered, you must submit VAT201 returns and pay any VAT owed to SARS on a bi-monthly basis. The standard VAT periods end on the last day of every second month, with returns due by the 25th of the following month. The six bi-monthly periods are:
- February — return due by 25 March
- April — return due by 25 May
- June — return due by 25 July
- August — return due by 25 September
- October — return due by 25 November
- December — return due by 25 January
For eFiling submissions with EFT payment, SARS allows until the last business day of the month following the tax period. Always confirm current deadlines on the SARS website as these can change.
Important: Never spend your VAT. The VAT you charge customers belongs to SARS. Set it aside in a separate account each month so you are never caught short on submission day.
PAYE: Monthly Submissions by the 7th
If you employ staff, you are registered as an employer with SARS and must deduct PAYE (Pay As You Earn) from employee salaries, along with UIF contributions and SDL (Skills Development Levy if your annual payroll exceeds R500,000). The EMP201 return and payment is due by the 7th of each month for the previous month. If the 7th falls on a weekend or public holiday, the deadline moves to the next business day.
In addition to monthly EMP201 returns, employers must submit:
- EMP501 reconciliation — twice yearly, in May and October
- IRP5 and IT3(a) certificates — annual employee tax certificates issued by 31 May each year
Provisional Tax: Two Payments Per Year
Provisional tax is how SARS collects income tax from businesses throughout the year rather than in one lump sum at year-end. Most companies and sole proprietors are provisional taxpayers. There are two mandatory provisional tax payments:
- First provisional payment (IRP6) — Due 6 months into your tax year. For companies with a February year-end, this falls on 31 August. You estimate your total taxable income for the year and pay half the estimated tax.
- Second provisional payment (IRP6) — Due at year-end, i.e. 28/29 February for February year-end companies. You refine your estimate and pay the balance.
A voluntary third provisional payment can be made within 6 months after year-end to top up and avoid interest on any underpayment. The top-up penalty applies if you underpaid by more than 10% of your final assessed tax.
Annual Income Tax Returns
Companies must submit their ITR14 (company income tax return) within 12 months of their financial year-end. The corporate income tax rate in South Africa is 27% for years of assessment ending on or after 31 March 2023.
Individual business owners (sole proprietors and partners) submit an ITR12 personal return during SARS Filing Season, which opens annually in July. The income tax rates for individuals use a progressive scale ranging from 18% on income up to R237,100, stepping up to 45% on income above R1,817,000. Always verify current rates with SARS or your tax practitioner as thresholds are adjusted annually for inflation.
Dividends Tax
When a company declares dividends to shareholders, dividends tax of 20% applies, subject to exemptions for qualifying corporate shareholders. This must be withheld and paid to SARS within 30 days of the dividend being paid.
Building Your Tax Calendar
The easiest way to stay compliant is to build all these dates into your business calendar at the start of each financial year. Key recurring dates to mark:
- 7th of every month — PAYE/UIF/SDL payment via EMP201
- 25th of VAT submission months — VAT201 submission and payment
- 6 months into financial year — First provisional tax IRP6
- Financial year-end — Second provisional tax IRP6
- 12 months after year-end — Annual ITR14 return deadline
- 31 May — IRP5/IT3(a) employee certificates and EMP501 annual reconciliation
Xage Accounting tracks your VAT periods and shows outstanding VAT balances automatically, making it straightforward to prepare your VAT201 each bi-monthly period without frantic searching for numbers. The provisional tax calculator helps you estimate your liability and plan your payments well in advance.