Tax Season Tips for Businesses (Big and Small) in South Africa

The Filing Season opens from July to October. South African business owners face annual tax compliance challenges that can impact cash flow and operations.

SARS has introduced digital processes and stricter compliance requirements in recent years. For all businesses, tax obligations affect growth and financial stability.

This guide helps you prepare effectively, avoid common mistakes, and maintain compliance. Access Bank supports businesses throughout tax season with banking solutions that simplify record-keeping and financial management.

SARS Deadlines for the Tax Season

Meeting tax deadlines prevents penalties and maintains compliance:

Individual and Personal Tax Returns

Non-provisional taxpayers: Late July – October. Provisional taxpayers: Late July to January of the following year. Business owners filing as individuals must meet these deadlines.

Auto-assessment notifications start in early July. Refunds are processed within 72 hours if banking details are correct.

Company Income Tax Returns

Companies submit ITR-14 returns within 12 months of their financial year-end. Filing deadlines depend on your specific year-end date.

Provisional Tax Obligations

Companies file provisional tax (IRP6s) 6 months after year-end (1st period), financial year-end (2nd period), and 6 months after year-end (3rd period). Missing deadlines trigger penalties and interest.

VAT and Employee Tax Deadlines

EMP201 submissions: by the 7th of the following month or the preceding Friday if the 7th falls on a weekend/holiday. VAT201 via eFiling: last business day of the month.

Employer Annual Reconciliation

EMP501 deadline: End of May each year. This ensures accurate employee tax assessments.

Essential Documents to Organise Before Tax Season

Proper documentation supports successful filing. Keep records for five years as SARS may request them:

Financial Records and Bookkeeping

Maintain comprehensive records that accurately reflect income, expenses, and transactions. The Tax Administration Act requires proper record-keeping.

Key documents:

• Bank statements for all business accounts
• Invoices and receipts for business expenses
• Sales records and customer invoices from clients
• Payroll records and employee payments
• Asset purchase documentation

Employee Tax Documentation

Collect IRP5/IT3(a) Employees Tax Certificates for all staff. These show salaries and taxes withheld throughout the year.

Business Expense Documentation

Support expense claims with proper documentation. For travel expenses, maintain logbooks – without one, you cannot claim business travel costs.

The SARS eLogbook system simplifies this process for businesses operating from physical locations or serving clients across different areas.

VAT-Related Documentation

VAT-registered businesses are required to maintain detailed transaction records. Missing tax invoices result in rejected VAT claims and penalties.

Digital Record Keeping

Electronic records are acceptable per SARS guidelines. Digital systems improve organisation and reduce document loss risk.

5 Common Business Tax Filing Mistakes to Avoid

Learning from mistakes saves time, money, and stress:

1. Late Filing and Payment Penalties

Filing late is the worst mistake – SARS treats late filings as “nil” returns. This significantly impacts cash flow and business operations.

2. Inadequate Record Keeping

Poor bookkeeping creates compliance issues. Many businesses fail to disclose zero-rated sales, which can negatively impact their brand reputation with SARS and potentially lead to audits.

3. VAT Compliance Errors

Failing to disclose capital goods input or classifying incorrectly. Proper VAT classification maintains compliance and supports business growth.

4. Incomplete Business Information

Update contact details, banking information, and public officer details before filing ITR14. Outdated information delays processing and creates compliance problems that can affect your ability to attract new opportunities.

5. Ignoring SARS Communications

Failing to respond to VAT verification requests within the timeframes results in additional assessments. Always respond promptly – this one thing can save significant costs and administrative burdens.

Creating a Tax Season Preparation Strategy

Successful businesses prepare year-round. Here’s how to create an effective strategy:

Monthly Tasks

• Reconcile accounts and update expense records
• Submit VAT returns and EMP201 declarations on time
• Review business details with SARS
• Track customer feedback on financial processes

Quarterly Reviews

• Assess provisional tax obligations and payments
• Review performance against projections
• Ensure employment tax compliance
• Evaluate market position and financial health

Annual Preparation Timeline

Three Months Before:

• Gather financial records and documentation
• Reconcile all accounts
• Ensure monthly submissions are current

Two Months Before:

• Prepare draft financial statements
• Calculate provisional tax requirements
• Review deductions and documentation

One Month Before:

• Finalise records and documentation
• Review filing requirements and deadlines
• Prepare submission materials

Working with Professionals

Consider qualified tax practitioners for complex transactions or multiple revenue streams. Professional support helps maximise deductions while ensuring compliance. This benefits businesses looking to expand or optimise their operations.

Note that professional fees often deliver value through improved compliance and potential tax savings.

How Access Bank Supports Business Tax Compliance

Access Bank offers banking solutions tailored for simplified tax compliance and enhanced financial management.

Simplified Banking for Better Record Keeping

Fixed Fee Accounts eliminate transaction surprises and provide predictable costs. This helps businesses track expenses accurately and maintain organised records for tax purposes.

With one fixed monthly fee covering daily transactions, you can focus on serving clients and growing your customer journey rather than tracking banking charges.

Dedicated Relationship Management

Access relationship managers who understand your business needs and design solutions supporting tax compliance. Our managers work with businesses across various market segments to provide guidance on banking solutions.

Digital Banking Solutions

Digital platforms provide detailed transaction histories, electronic statements, and transaction categorisation for easier tax preparation. This enables businesses to engage more effectively with their financial data.

For businesses operating across multiple physical locations or serving a diverse audience, our digital tools simplify financial management and compliance tracking.

Business Growth Support

Access Bank partners with businesses to understand their priorities and structure solutions that support growth goals. We provide comprehensive financial solutions beyond basic banking.

Whether you’re looking to expand operations, enter a niche market, or enhance customer service delivery, a solid financial foundation supports these objectives.

Quick Decision-Making

Access Bank makes swift decisions when businesses need responsive banking support. During tax season, when cash flow challenges or opportunities arise, responsive banking partnerships make a significant difference.

This is especially valuable when businesses need to determine optimal financing or when competition requires quick responses to market opportunities.

Technology Solutions for Tax Compliance

Modern businesses can leverage technology to streamline preparation and improve compliance:

Cloud-Based Accounting Systems

Digital platforms automatically categorise transactions, generate reports, and integrate with banking systems. This reduces manual data entry and errors while helping businesses maintain accurate financial positions.

Cloud systems benefit businesses serving clients across different areas or managing multiple revenue streams. These solutions support better decision-making through real-time financial data.

SARS eFiling Integration

Use eFiling or SARS MobiApp for streamlined submissions and real-time status updates. These digital platforms simplify the submission process and provide immediate confirmation.

For businesses that sell products or services across South Africa, digital filing ensures consistent compliance regardless of location.

Document Management Systems

Digital storage keeps important records organised, backed up, and accessible during tax season or audits. This system helps businesses accept and manage increasing document volumes while maintaining security.

Building Long-Term Compliance Habits

Successful preparation starts with consistent business habits:

Regular Financial Reviews

Schedule monthly reviews to identify issues early and maintain current, accurate records. This practice helps businesses stay competitive and responsive to market changes.

For businesses building brand identity or expanding their community presence, regular financial reviews support strategic planning and resource allocation.

Continuous Education

Stay informed about tax law changes through SARS communications and professional development. Education helps business owners adapt to regulatory changes and optimise their operations.

Professional Relationships

Build relationships with qualified accountants, tax practitioners, and banking professionals. These connections provide guidance and support throughout the business lifecycle.

Consider these relationships as investments in business improvement and long-term success, especially valuable for businesses targeting growth or market expansion.

Risk Management

Implementing compliance programs protects directors and helps businesses meet legal requirements. Good practices enhance credibility with customers, financial institutions, and other businesses.

For example, strong compliance supports businesses when they compete for contracts or seek to attract investment for expansion.

Your Tax Season Success Starts with Access Bank

Tax season requires preparation, organisation, and the right banking partner. With proper planning, businesses can navigate compliance confidently while focusing on growth.

Access Bank supports South African businesses through growth stages, including tax compliance challenges. Our relationship managers, predictable banking solutions, and quick decision-making make us ideal partners for businesses prioritising success over administrative burdens.

Contact Access Bank today to learn how our business banking solutions support your success.