Tax year South Africa: key dates, deadlines and what small businesses must know

Published Friday 14 August 2026

Table of contents

• What is the tax year in South Africa?
• Key tax year dates and deadlines for 2025/2026
• How to prepare for tax year end
• Small business tax options in South Africa
• What happens if you miss a tax deadline?
• Manage your tax year with confidence using Xero
• FAQs on the tax year in South Africa

Key takeaways

• South Africa's tax year runs from 1 March to 28 February, with the 2026/2027 tax year starting on 1 March 2026 and ending on 28 February 2027.
• Provisional taxpayers must submit two IRP6 payments during the tax year, with the first due on 31 August 2026 and the second on 26 February 2027; missing these deadlines can trigger penalties and interest from SARS.
• Small businesses with qualifying turnover up to R2.3 million can register for turnover tax, which replaces income tax, VAT, provisional tax, capital gains tax, and dividends tax in a single simplified return, with the option to register for VAT separately if needed.
• Keeping accurate, up-to-date financial records throughout the year is the best way to avoid last-minute stress at tax year end, and you're required to retain those records for a minimum of five years.

What is the tax year in South Africa?

The tax year in South Africa is the 12-month period that the South African Revenue Service (SARS) uses to assess your income and calculate your tax obligations. It runs from 1 March to 28 February (or 29 February in a leap year). The current 2026/2027 tax year began on 1 March 20265 and ends on 28 February 2027.

Understanding when your tax year starts and ends is the foundation for meeting every deadline that follows, from provisional tax payments to annual filing.

Tax year vs financial year

The terms "tax year" and "financial year" are often used interchangeably, but they aren't always the same thing. Your tax year is the period SARS uses to assess your income. Your financial year, on the other hand, is the 12-month accounting period your business uses for its own financial reporting.

Companies registered with the Companies and Intellectual Property Commission (CIPC) can choose their own financial year end under Section 27 of the Companies Act. If you need to change it, you'll submit a CoR25 form to CIPC (at a cost of R100), though any single change can't result in a period longer than 15 months. Most South African companies align their financial year with the March-to-February tax year for simplicity, but it's not compulsory.

Tax year vs tax season

Your tax year is the full 12-month period during which you earn income. Tax season is the separate window later in the year – typically running from July to January, though dates vary – when SARS opens its filing system and you submit your return for that completed tax year.

For example, the 2026 filing season covers the tax year that ended on 28 February 2026. The submission window opens in mid-July 2026, with most individuals filing until 23 October 2026 and provisional taxpayers and trusts until 22 January 2027. During this period, you're reporting income earned between 1 March 2025 and 28 February 2026.

Key tax year dates and deadlines for 2026/2027

Below are the most important deadlines for the current cycle.

Provisional tax deadlines (IRP6)

If you're registered as a provisional taxpayer, you'll need to estimate your taxable income and make payments to SARS during the tax year. These are submitted on an IRP6 form. For the 2026/2027 tax year (1 March 2026 to 28 February 2027), the deadlines are:

• First payment: 31 August 2026
• Second payment: 26 February 2027
• Third (optional) top-up payment: 30 September 2027

The third payment is voluntary and gives you a chance to correct any underestimation before SARS assesses your return.

SARS filing season dates

Filing season is when you submit your annual income tax return to SARS for the completed tax year. For the 2026 filing season (covering the tax year 1 March 2025 to 28 February 2026), the key windows are:

• Auto-assessments issued: 1–12 July 2026
• Non-provisional taxpayers: 13 July to 23 October 2026
• Provisional taxpayers: 13 July to 22 January 2027
• Trusts: 13 July to 22 January 2027

If you receive an auto-assessment and agree with it, you don't need to file a return. If you disagree, you can file within the dates above to correct it.

Monthly obligations

If you have employees or are registered for VAT, you'll need to meet these monthly deadlines:

• EMP201 (PAYE, UIF, and SDL): due by the 7th of the following month.
• VAT201 return: due by the last business day of the month following each VAT period (most businesses file every two months, though some file monthly, every six months, or annually depending on their VAT category).

These regular submissions keep your business compliant throughout the year, rather than leaving everything to the annual filing period.

Annual obligations

Beyond your income tax return, there are other annual submissions to keep in mind:

• EMP501 reconciliation: the submission window runs from 1 April to 31 May each year, reconciling the PAYE, UIF, and SDL you've declared and paid for the full tax year.
• CIPC annual returns: required to keep your company registration in good standing.
• Record retention: SARS requires you to keep all financial records for a minimum of five years from the date of submission of your return.

Missing any of these can result in penalties, deregistration, or complications when SARS reviews your affairs.

How to prepare for tax year end

Preparing for tax year end doesn't need to be a last-minute scramble. Spreading the work throughout the year makes the process smoother and reduces the risk of errors.

Reconcile your financial records

Start by making sure every transaction in your accounting records matches your bank statements. Reconciliation helps you catch missing invoices, duplicate entries, or unexplained transactions before you file.

If you reconcile your accounts monthly rather than waiting until year end, you'll catch errors early, before they’ve had a chance to compound. Regular reconciliation also gives you a clearer picture of your cash position at any point in the year.

Gather supporting documents

SARS may request documentation to verify your return, so it's worth gathering everything in advance. Key documents to have ready include:

• Bank statements for all business accounts
• Invoices for income received and expenses claimed
• Payroll records and IRP5 certificates
• Proof of provisional tax payments made
• Asset registers and depreciation schedules

Organising these documents digitally makes them easier to find and ensures you can respond quickly if SARS requests supporting information.

Review provisional tax estimates

Before the tax year ends, compare your actual income against the provisional tax estimates you submitted on your IRP6 forms. If your actual income is significantly higher than your estimate, you could face an underestimation penalty.

The optional third IRP6 payment gives you a chance to top up your payments and reduce the gap. Reviewing your estimates early gives you time to plan for any additional payment.

Check employee tax certificates (IRP5s)

If you have employees, you're responsible for issuing IRP5 certificates that reflect each employee's earnings, deductions, and tax contributions for the year. These certificates form part of your EMP501 reconciliation submission.

From 2026, SARS requires a valid Income Tax Reference Number for every employee on your EMP501 — make sure all your staff are registered for tax well before the submission deadline.

Small business tax options in South Africa

South Africa offers simplified tax options for qualifying small businesses. Choosing the right structure can reduce your admin burden and potentially lower your tax rate.

Turnover tax for micro businesses

Turnover tax is a simplified tax system designed for sole proprietors, partnerships, close corporations, and companies with qualifying annual turnover of up to R2.3 million – this increased from R1 million in the 2025/26 tax year.

The turnover tax rate increases from 0% to 3%, depending on your income bracket. One of the biggest advantages is what it replaces: if you register for turnover tax, you don't need to worry about income tax, VAT, provisional tax, capital gains tax, or dividends tax separately. You submit a single return instead. However, you can voluntarily register for VAT if your clients require VAT invoices – the two systems run independently.

This option is particularly useful if your business has low expenses relative to income, since turnover tax is calculated on revenue, not profit.

Small business corporation (SBC) tax

If your gross income is up to R20 million and you meet certain qualifying criteria, your business may qualify as a small business corporation. SBCs benefit from progressive tax rates that start lower than the standard corporate rate.

The standard corporate income tax rate in South Africa is 27%. SBCs pay reduced rates on the first tiers of taxable income, with the rate increasing progressively as income rises. This structure rewards smaller businesses with meaningful tax savings on their initial earnings.

Which option suits your business?

The right choice depends on your business size, structure, and expenses. Here are some questions to help you calculate your potential tax liability:

• Is your annual turnover under R2.3 million? Turnover tax could simplify your admin significantly.
• Do you have substantial deductible expenses? SBC tax, which is based on taxable income (profit), may be more beneficial since you can deduct expenses before calculating your liability.
• Do you want to avoid VAT admin altogether? Turnover tax removes the obligation – though you can still register voluntarily if your clients require VAT invoices.

Speaking with a registered tax practitioner or accountant can help you model both scenarios and choose the one that saves you the most.

What happens if you miss a tax deadline?

Missing a tax deadline in South Africa carries real financial consequences. SARS applies penalties and interest that can add up quickly.

Late filing attracts administrative penalties ranging from R250 to R16,000 per month based on your taxable income, recurring every month your return remains outstanding for up to 35 months. Late payment adds a 10% penalty on the outstanding amount on top of that. If you underestimate your provisional tax and your estimate falls below 90% of your actual taxable income, SARS can charge a further 20% penalty on the shortfall.

SARS has also stepped up enforcement through initiatives like Project AmaBillions, which targets non-compliant taxpayers and businesses owing significant amounts. The programme uses data matching and risk profiling to identify gaps between what you've declared and what SARS expects.

The simplest way to avoid penalties is to file on time, pay what you owe by the deadline, and keep your records accurate. If you do fall behind, it's better to make a voluntary disclosure or settle your account as soon as possible rather than waiting for SARS to come to you.

Manage your tax year with confidence using Xero

Keeping track of tax deadlines, reconciliations, and submissions across an entire year takes consistent effort. Cloud accounting software can help you stay organised and reduce the manual work involved in preparing for each deadline.

Xero gives you a real-time view of your finances, automates bank reconciliation, and helps you generate the reports you need for SARS submissions. With your records always up to date, you can approach tax season with confidence rather than stress.

Ready to simplify your tax admin? Get one month free and see how Xero can help you manage your tax year from start to finish.

FAQs on the tax year in South Africa

Here are answers to common questions about the South African tax year and related deadlines.

When does the tax year start and end in South Africa?

The standard tax year runs from 1 March to 28 February (or 29 February in a leap year). The current 2026/2027 tax year began on 1 March 2026 and ends on 28 February 2027.

What is the difference between the tax year and filing season?

The tax year is the 12-month period during which you earn income. Filing season is the separate window, later in the year, when SARS opens its system for you to submit your return for that completed tax year.

What is turnover tax, and who qualifies?

Turnover tax is a simplified tax system for businesses with qualifying annual turnover of up to R2.3 million. It replaces income tax, VAT, provisional tax, capital gains tax, and dividends tax in a single return, with rates ranging from 0% to 3%.

How long must you keep tax records in South Africa?

SARS requires you to retain all financial and tax records for a minimum of five years from the date of submission of your return.

What happens if you miss a SARS deadline?

SARS charges administrative penalties for late filing ranging from R250 to R16,000 per month based on your taxable income, recurring until the return is submitted. Late payments attract a 10% penalty on the outstanding amount, and underestimating your provisional tax by more than 10% of your actual income can trigger a further 20% penalty on the shortfall.