Let’s be honest — getting a message from SARS saying you’ve been selected for a VAT verification or audit can make your stomach drop. Even if you know everything has been done correctly, it’s still stressful. Most VAT audits and reviews are manageable, especially when your records are kept properly and your VAT is prepared using accounting software like Xero. SARS uses two different processes, and they are not the same thing.

Written by Pumeza Chochoe

The EMP501 Employer Annual Reconciliation filing season is now open, and SARS has confirmed that employers have from 1 April to 31 May 2026 to submit their annual reconciliation.

This is the period during which employers must prepare and submit their EMP501 reconciliation, together with employees’ IRP5 / IT3(a) tax certificates. The reconciliation covers the full tax year from 1 March 2025 to 28 February 2026.

As we approach the new financial year, we want to remind you of an important update regarding the national minimum wage in South Africa.

With effect from 1 March 2026, the minimum wage rates have increased as follows:

• National Minimum Wage: R30.23 per hour

• Farm workers: R30.23 per hour

• Domestic workers: R30.23 per hour

• Expanded Public Works Programme (EPWP): R16.62 per hour

If you receive dividends from a South African company (or you run a (Pty) Ltd that pays dividends), it’s important to understand what “dividends tax” is, who must deal with it, and what paperwork we need from you each year.

The Budget Speech always comes with a few tweaks that can affect your personal tax, payroll, and planning. Here are the key changes we want you to be aware of — nice and simple.

One of the most talked‑about proposals in the 2026/27 Budget is the plan to raise the compulsory VAT registration threshold from R1 million to R2.3 million in a 12‑month period. This is a big shift, especially for small businesses that have been hovering just above or below the current R1 million mark.

Over the past few years, SARS has been tightening its compliance systems, and now a major shift is here. From February 2026, SARS will reject any PAYE (EMP501) reconciliation that includes an employee who is required to be tax‑registered but does not have a valid Income Tax Reference Number (ITRN). The long‑standing warning “grace period” officially ends with the 2026 Employer Filing Season, and any non‑compliance may lead to administrative penalties.

Congratulations to Annja who has been selected for the 2025 SAICA Chairman’s Awards! The SAICA Chairman’s Awards were established to honour seasoned members who embody the highest ideals of our profession; individuals whose work and leadership have created a lasting difference, not only within their organisations but in the communities and industries they serve. These Awards represent one of the highest forms of recognition conferred by SAICA, celebrating distinction, purpose, and integrity in action.

We’d like to explain how these certificates are generated so that when you receive yours, you understand what it means and why it matters. Two documents that often cause confusion are the IRP5 and the IT3. Here’s a straightforward guide to help you make sense of them before submitting your return.

As social media continues to evolve, more South Africans are turning their creativity into income—whether through sponsored posts, affiliate links, or gifted products. If you're one of them, it's important to understand how SARS views this kind of income and what that means for your tax responsibilities.

Many South African businesses act as agents—buying or selling goods and services on behalf of clients. This can be a practical solution when clients prefer not to manage suppliers themselves and are happy to pay a fee for someone else to handle the logistics. After listening to Pieter van der Zwan’s TaxBreak podcast episode on VAT and agency relationships, I revisited Section 54 of the VAT Act to unpack what it means for VAT-registered businesses operating in this way.

Auto-assessments notices started on the 7th of July until the 21st of July. This means that SARS has taken all the information submitted by 3rd parties and prepared your tax return. You no longer need to approve your return, and SARS will pay out your refund within 72 hours of the assessment.

At our firm, we’re committed to helping you stay compliant, informed, and stress-free when it comes to tax matters. Whether it’s VAT, PAYE, or Income Tax, we’re here to support you every step of the way. But we need your help with something important.

One of the most notable changes is the automation of the application process for requesting relief from South African tax under Double Taxation Agreements (DTA) for pensions and/or annuities. This means that you can now submit your applications via eFiling, making the process more efficient and reducing the need for manual interventions. SARS aims to evaluate these applications within 21 working days.

Turnover tax is a simplified tax system aimed at reducing the administrative burden for small businesses with an annual turnover of less than R1 million. If your turnover exceeds R1 million, you must register for VAT and pay tax at standard rates. Businesses can be registered for both turnover tax and VAT (voluntary registration).

As the 2025 individuals tax season approaches, it's essential to start gathering the necessary documents to ensure a smooth and timely submission of your tax return to the South African Revenue Service (SARS). You are more than welcome to start sending this to Pumeza and we will save this on file. We aim to make this process as seamless as possible for you. Below, we've outlined the key dates for the 2025 tax season and a comprehensive list of documents you'll need to provide us. Additionally, we'll explain the auto-assessment process and how we can assist you with it.

As we approach the end of February 2025, it's time for a friendly reminder about some important tax deadlines. The second provisional tax payment is due by the end of February 2025. 

This is a crucial deadline for all taxpayers, and it's essential to ensure that your payments are made on time to avoid any penalties or interest from SARS.

As your trusted accountant, I want to share an incredible opportunity for you to grow your wealth without the burden of taxes. Introducing the Tax-Free Savings Account (TFSA) – a powerful tool designed to help you save more efficiently.

A Tax-Free Savings Account (TFSA) is a special type of savings account that allows you to earn interest, dividends, and capital gains without paying any tax on these earnings. This means that all the growth in your investment remains entirely yours, free from the clutches of the taxman.