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2026 Legal and Policy

Legal & policy - 3 September 2026

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SOUTH AFRICAN REVENUE SERVICE (SARS)

  • 27 August 2026 – Customs and Excise Act, 1964: The tariff amendments notices, scheduled for publication in the Government Gazette, relate to the following:

Up to and including 27 February 2027

· Imposition of provisional payments in relation to anti-dumping duties against the alleged dumping of flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, painted, varnished or coated with plastics, classifiable under tariff subheadings 7210.70.20, 7210.70.30, 7210.70.40 and 7210.70.90 originating in or imported from the Peoples Republic of China (ITAC Report 788)

Effective 28 August 2026

· Amendment to Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99, to increase the rate of customs duty on sugar from 483.72c/kg to 697.92c/kg as a consequence to the increase of the Dollar Based Reference Price from US$680/ton to US$785/ton (ITAC Report 781)

Publication details will be made available later

  • 28 August 2026 – In this 15th edition of the SMME Connect, SARS reinforces its commitment to make tax compliance simpler and more accessible for small businesses through education and collaboration. This edition tells the story of SARS meeting SMMEs where they are: in learning spaces, industry platforms and community engagements. It highlights recent taxpayer education initiatives, including International SMME Day 2026, the Manufacturing Indaba and SEZ workshops, where SARS engaged entrepreneurs, manufacturers and SMMEs on tax obligations, digital services, record keeping, Turnover Tax, Tax Compliance Status and voluntary compliance. Through these engagements, SARS continues to bring tax administration services closer to taxpayers, support business formalisation and empower SMMEs with the knowledge needed to trade, grow and remain compliant. Every engagement is an opportunity to turn information into action and compliance into a business advantage.
  • 28 August 2026 – The Guide to the Tax Compliance Status functionality on eFiling was updated to indicate that non-resident directors who make multiple transfers of rental income or director’s fees during the year only need to submit one Approval for International Transfer (AIT) application. SARS can accept a single annual AIT application based on the estimated annual value of the director’s fees or rental income. For director’s fees, the application must be accompanied by an appointment letter and confirmation from the company that PAYE is being withheld. For rental income, the application must be accompanied by the relevant rental contracts/lease agreements/rental statements, including the duration, rental amounts, and payment frequency. This follows amendments of the Exchange Control Regulation introduced by the South African Reserve Bank (SARB) impacting these applications. The Guide to the Tax Compliance Status (TCS) functionality on eFiling has been updated accordingly.
  • 31 August 2026 – The state provides state warehouses for the safekeeping of goods. These are managed by Customs. The purpose of this list of unentered goods is to notify the importer, exporter and any other person that has interest in the goods that the goods have been taken up into the State warehouse and if they remain unentered they will be disposed in accordance with the provisions of the Customs & Excise Act. See the latest Customs Weekly List of Unentered Goods here.
  • 31 August 2026 – The South African Revenue Service (SARS) is committed to enabling government to build a capable state to advance the wellbeing of all South Africans. Employers play a vital role in this effort. Your commitment to tax compliance directly supports the country’s economic development and growth. As we approach the Employer Interim Reconciliation period, SARS is dedicated to providing clarity and certainty to make it easier for employers to meet their obligations. This letter highlights the key requirements, submission channels and system changes for the 2026 interim reconciliation period.

Employer Interim Reconciliation Declarations

The Employer Interim Reconciliation submission period is from 21 September to 31 October 2026. During this time, all employers must reconcile their declarations for the first six months of the reconciliation year, 1 March 2026 to 31 August 2026, and submit their EMP501 on eFiling or e@syFile™ Employer. Employers with fewer than 50 employees may use eFiling. To submit a correct and complete reconciliation, your EMP501 must reflect:

· Reconciled PAYE, UIF and SDL Values: Matching your previously submitted EMP201 returns. Where these values differ from the interim IRP5/IT3(a) certificates generated, employers must amend the prepopulated figures to the correct amounts;

· Actual Payments Made: Payments during the period, excluding any penalties and interest; and

· Accurate Payroll and Employee Information: Payroll information, employees’ tax reference numbers, and the IRP5/IT3(a) tax certificates for the period 1 March 2026 to 31 August 2026.

Key Changes for 2026

· Updated e@syFile™ Employer release: SARS plans to release the updated e@syFile™ Employer build for the Employer Interim Reconciliation in mid-September 2026. Employers must ensure that they download and use the latest version once it is formally released.

· Business Requirements Specification (BRS): The Business Requirements Specification, SARS_PAYE_BRS – PAYE Employer Reconciliation V25.3.0, for the Employer Interim Reconciliation submission period 2026-08, is available on the SARS website. Employers and payroll administrators are encouraged to review the updated BRS to ensure that payroll systems and submissions align with the latest requirements.

· Income Tax registration support: The updated BRS includes a new source code for ITREG to help mitigate duplicate Income Tax registration for employees.

· Validation and source code updates: Minor amendments have been made to source code validations and descriptions. Employers and payroll administrators should review these changes before preparing their interim reconciliation submissions.

Income Tax Numbers Remain Mandatory

Income Tax numbers have been strictly enforced in e@syFile™ Employer and eFiling since the February 2026 employer Filing Season. Employers must ensure that all employees have valid Income Tax numbers before submitting their reconciliation. Missing or invalid Income Tax numbers may delay processing and may result in EMP501 submissions being rejected. To register or retrieve Income Tax numbers:

· Employers: Use the ITREG/BundleReg process on eFiling or e@syFile™, the Tax Reference Number Enquiry Service on eFiling, or visit a SARS Service Centre, with an appointment, to register or request employees’ numbers.

· Employees: Individuals can register or retrieve their own tax numbers on the SARS website under the Individuals section.

Submission Channels

Employers can submit their EMP501 declarations and employee tax certificates through the following channels:

· e@syFile™ Employer – Available to all employers and can be used regardless of the number of employee tax certificates being submitted.

· SARS eFiling – Employers can submit through eFiling, subject to a maximum of 50 IRP5/IT3(a) certificates per submission.

· As an exception, employers with 5 or fewer certificates who are unable to submit via eFiling or e@syFile™ Employer may book an appointment and visit a SARS Service Centre for assistance with their submission.

Accuracy and Timely Filing is Critical

By submitting accurate declarations on time, employers can enjoy a smoother reconciliation process while avoiding unnecessary penalties, interest, and additional administrative work.

  • Incorrect calculation of the monthly PAYE liability may result in penalties and interest. This includes corrections made on the EMP501 reconciliation, because any shortfall is attributed to the last month of the reconciliation period.
  • Employers must submit an accurate EMP501 using e@syFile™ Employer or SARS eFiling by 31 October 2026 to avoid late-submission penalties.

Consequences of non-compliance

Failure to comply with reconciliation requirements carries serious consequences:

· Penalties: Late submission of an EMP501 will result in administrative penalties equal to 1% of your annual PAYE This penalty increases by 1% for every month the return remains outstanding, up to a maximum of 10%.

· Forfeiture of ETI: ETI employers with unused ETI will forfeit the ETI for non-submission or where the employer has a non-compliant status.

· Fines and Imprisonment: Employers who wilfully or negligently fail to submit EMP201 or EMP501 returns will be guilty of an offence. Upon conviction, they will be liable for a fine or imprisonment for up to two years.

What Constitutes a Criminal Offence?

Employers may face a fine or imprisonment for up to two years if they:

  • Fail to deduct employees’ tax, PAYE, from remuneration or fail to pay the deducted tax to SARS within the prescribed period;
  • Do not deliver IRP5 or IT3(a) certificates to employees or former employees within the prescribed deadlines; or
  • Use employees’ deducted tax for purposes other than paying the correct amount to SARS.

Remember to Check Your Submission Status

After submitting an EMP501, employers should regularly monitor the status of their submission and review the PAYE Dashboard to ensure everything was processed correctly. Taking this simple step provides peace of mind and helps confirm that no outstanding obligations remain.

More Information

For more information about completing manual certificates, employers can go to the e@syFile™ Employer User Guide or access the Step-by-Step Guide to the Employer Reconciliation Process.

  • 31 August 2026 – South Africa recorded a preliminary trade balance surplus of R20.1 billion in July 2026. This surplus was attributable to exports of R194.0 billion and imports of R173.8 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN).

See the full Media Release here. Visit the Trade Statistics webpage.

  • 1 September 2026 – Tax Administration Act, 2011

· SARSTC IT 77272 (ADM) [2026] ZATC GQ (11 August 2026)

· SARSTC IT 46515 and VAT 22578 (ADM) [2026] ZATC JHB (4 August 2026)

Summaries are available on the Tax Court Judgments page

  • 2 September 2026 – Income Tax Act, 1962

· Interpretation Note 146 – Meaning of “Deemed to Be One and the Same Person” For Determining the Entitlement to the Wear-and-Tear Allowance Under an Amalgamation Transaction

  • 2 September 2026 – SARS’s Voluntary Disclosure Programme (VDP) lets you correct past tax errors.

Come forward voluntarily and you could get:

    • Relief from penalties.
    • Protection from criminal prosecution.
    • Possible interest relief.
    • Fully compliant tax affairs.

Read our VDP leaflet for more information.

  • 2 September 2026 – Income Tax Act, 1962, and Tax Administration Act, 2011

· SARSTC IT 77406 IT 77357 (IT) [2026] ZATC (24 August 2026)

· SARSTC IT 46503 (ADM) [2026] ZATC JHB (1 June 2026)

Summaries are available on the Tax Court Judgments page

NATIONAL TREASURY (NT)

AFRICAN TAX ADMINISTRATION FORUM

SOUTHERN AFRICAN LEGAL INFORMATION INSTITUTE (SAFLII)

DivisionTax
Categories
Tax
Date3 September 2026