As a business owner or individual taxpayer, staying on top of your tax obligations is critical to avoid penalties and interest from the South African Revenue Service (SARS). One of the most important aspects of tax compliance is understanding the various payment deadlines. Whether you’re managing personal taxes or running a business, knowing these deadlines is essential for maintaining good standing with SARS.
In this blog post, Boatwright Consulting, a chartered accounting firm in East London, RSA breaks down the key SARS payment deadlines and explains how we can help ensure you never miss an important due date.
Key SARS Payment Deadlines
SARS has different payment deadlines depending on the type of tax, and these deadlines vary throughout the year. Let’s take a closer look at the most common types of taxes and their respective due dates.
1. Provisional Tax Deadlines
Provisional tax applies to individuals and companies that earn income that is not subject to PAYE (Pay-As-You-Earn). Provisional taxpayers are required to make two advance payments during the tax year, with an optional third payment.
- 1st Provisional Payment: Due on 31 August for taxpayers with a February year-end. This payment covers the first six months of the tax year.
- 2nd Provisional Payment: Due on 28 February. This payment must account for the entire taxable income for the full year.
- 3rd Provisional Payment: Optional, due on 30 September, after the end of the tax year. This payment is used to settle any outstanding tax liability not covered by the first two payments.
2. VAT (Value-Added Tax) Deadlines
For VAT-registered businesses, regular VAT submissions and payments are required. Depending on your VAT category, you may have different reporting periods.
- Monthly VAT E-Filers: Payments are due by the last day of each month for the previous month’s VAT liability.
- Bi-Monthly VAT E-Filers: Payments are due every second month by the last day of the month (e.g., January’s and February’s VAT return is due by 31 March).
- Annual VAT Filers: Annual VAT returns are due by the end of your financial year.
If the last day of the month falls on a weekend or public holiday, payments are due on the preceding business day, by close of business.
3. PAYE (Pay-As-You-Earn) Deadlines
Businesses that employ staff are required to deduct PAYE from their employees’ salaries and pay it over to SARS on a monthly basis.
- PAYE Payment Deadline: PAYE is due by the 7th of the following month. If the 7th falls on a weekend or public holiday, payments are due on the preceding business day, by close of business.
4. Corporate Income Tax Deadlines
Companies in South Africa must pay corporate income tax (CIT) based on their taxable income.
- First Provisional Tax Payment: Due six months into the company’s financial year.
- Second Provisional Tax Payment: Due by the last day of the financial year.
- Annual Income Tax Return (ITR14): The submission deadline for the company’s income tax return is typically 12 months after the company’s financial year-end.
5. Personal Income Tax Deadlines
For individual taxpayers, SARS sets annual deadlines for the submission of income tax returns and the payment of any outstanding taxes.
- Tax Season Filing: SARS typically opens the individual tax filing season between July and November each year.
The Consequences of Missing SARS Payment Deadlines
Missing any SARS payment deadlines can result in penalties and interest, which can significantly increase your tax liability. Penalties can range from a fixed amount for late submissions to a percentage of the unpaid tax. Additionally, late payments accrue interest at SARS’ prescribed rate, further compounding the issue.
Staying compliant with SARS not only helps avoid these financial repercussions but also builds a healthy relationship with the tax authorities, ensuring smoother interactions in the future.
How Boatwright Consulting Can Help You Stay on Track
At Boatwright Consulting, we understand that managing tax deadlines can be overwhelming, especially for busy business owners or individuals with complex tax affairs. Here’s how we can help you with our tax services:
- Deadline Management: We keep track of all your tax obligations and ensure that you never miss a payment deadline, giving you peace of mind.
- Accurate Tax Calculations: We ensure that your tax liabilities are calculated correctly, helping you avoid any errors that could lead to penalties or additional costs.
- Efficient Filing: Whether it’s PAYE, VAT, or income tax returns, we handle the entire filing process for you, ensuring timely and accurate submissions to SARS.
- Tax Strategy: We assist with planning your tax payments in a way that optimizes cash flow, making sure you’re not overburdened by last-minute tax bills.
- Ongoing Support: Tax laws and deadlines can change, but with Boatwright Consulting as your partner, you’ll always be up to date. Our team of experts is always available to answer your questions and provide guidance on any tax-related issues.
Conclusion
Managing SARS payment deadlines can be complex, but with the right partner, it doesn’t have to be stressful. Boatwright Consulting provides personalized tax management solutions that ensure your tax affairs are always in order and that you remain compliant with SARS.
Contact us today to learn how we can help you stay on top of your tax obligations and avoid costly penalties. Let us take the stress out of managing tax deadlines so you can focus on what matters most—growing your business and achieving your financial goals.
Disclaimer: This blog post is intended for informational purposes only and should not be construed as professional tax advice. Individual circumstances may vary, and consultation with a qualified tax advisor is recommended for personalized guidance. Boatwright Consulting is a Chartered Accounting Firm in East London, RSA.