02/10/2026
SEPTEMBER 2026
TAX & BUSINESS NEWSLETTER
Keeping you informed. Keeping you compliant.
September brought several important developments from the South African Revenue Service (SARS), together with a significant interest-rate decision from the South African Reserve Bank (SARB).
Here are the key tax and financial developments you should know about.
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# # 📌 1. 2026 Filing Season: The October Deadline Is Approaching
If you are an individual taxpayer who was *not auto-assessed, your 2026 income-tax return must be submitted by **23 October 2026*.
Provisional taxpayers have until *22 January 2027*.
Don't leave your return until the last minute. SARS uses information from employers, financial institutions, medical schemes and other third parties to pre-populate tax returns, but taxpayers remain responsible for checking that the information is correct and declaring all required income.
Our tip:
Review your tax documents now and make sure your supporting information is available before submitting.
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# # 🏢 2. Employers: EMP501 Interim Reconciliation Is Underway
The *Employer Interim Reconciliation* period opened on *21 September 2026* and runs until *31 October 2026*.
Employers must reconcile their payroll information for the period *1 March 2026 to 31 August 2026* and submit the EMP501 reconciliation to SARS.
This includes ensuring that PAYE, UIF, SDL and ETI amounts are accurate and that employee IRP5/IT3(a) information is correct.
Errors in payroll data can ultimately affect employees' individual tax returns, so this is more than simply an administrative exercise.
Our tip:
Don't wait until the final days of October to reconcile your payroll.
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# # 🏦 3. Trust Tax Season Has Opened
Trust Filing Season opened on *19 September 2026* and runs until 22 January 2027.
Trustees and registered representatives must submit the applicable ITR12T return during the prescribed filing period.
There is also an important deadline for trusts:
30 September 2026 – IT3(t) third-party data return
The IT3(t) return provides SARS with information about amounts vested in beneficiaries and helps SARS populate beneficiaries' individual tax returns.
Trustees should also ensure that changes to trust registration details are reported to SARS within the prescribed period.
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# # 📊 4. Third-Party Data Submissions Are Underway
SARS's bi-annual third-party data submission period runs from *1 September to 31 October 2026*.
Approved third-party data providers submit information relating to taxpayers, which SARS uses to pre-populate returns and support its automated assessment processes.
This is another reason why taxpayers should carefully check their tax returns rather than simply accepting pre-populated information without reviewing it.
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# # 🧾 5. SARS Moves Ahead With VAT Modernisation
One of the more significant longer-term developments announced during September was SARS's continued work on *VAT Modernisation*.
SARS has published its VAT Modernisation Consultation Paper and is inviting stakeholders to submit comments by *16 October 2026*.
The proposed direction includes greater use of digital systems, e-invoicing, e-reporting, interoperability and near-real-time transactional data. SARS says the objective is to modernise VAT administration, reduce the administrative burden, improve compliance and strengthen its ability to detect risks and fraud.
For VAT-registered businesses, this is an area worth watching closely.
Our tip:
Businesses should start thinking about the quality of their accounting records and whether their accounting and invoicing systems are ready for increasingly digital tax administration.
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# # 🔍 6. SARS Highlights Its Voluntary Disclosure Programme
SARS again highlighted its *Voluntary Disclosure Programme (VDP)* during September.
The VDP provides a mechanism through which taxpayers can approach SARS voluntarily to correct certain historical tax non-compliance.
Depending on the circumstances and whether the statutory requirements are met, relief may include relief from certain penalties and protection from criminal prosecution, with possible interest relief.
If you believe that previous tax returns or declarations may contain material errors or omissions, it is worth obtaining professional advice before approaching SARS.
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# # 🌍 7. International Tax Reporting Is Becoming More Comprehensive
SARS announced enhancements to its systems supporting *Automatic Exchange of Information (AEOI)* and the Common Reporting Standard (CRS).
The changes are intended to improve tax transparency and data quality and include additional financial products and institutions coming into the reporting environment, including certain e-money products, payment institutions and digital wallet platforms.
For South Africans with offshore investments or financial interests, accurate disclosure and proper tax advice remain increasingly important.
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# # 📈 8. SARB Raises the Repo Rate to 7.25%
The South African Reserve Bank increased the policy rate by *25 basis points to 7.25%, effective **25 September 2026*.
This takes the prime lending rate to *10.75%*.
The repo-rate increase does not directly change personal income-tax rates, but it can affect taxpayers indirectly.
For example:
* Higher savings rates may result in more taxable interest income.
* Higher borrowing costs may affect rental-property cash flow.
* Interest on private loans is not automatically tax deductible.
* Taxpayers with outstanding SARS debt should be mindful of interest and penalties.
SARB said the decision was driven against a backdrop of renewed inflation risks and rising fuel prices, while inflation was reported at 4.4%.
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# # 🔐 9. Keep Your SARS Contact Details Up to Date
SARS continues to strengthen security around eFiling.
Taxpayers can update their security contact details through the SARS website without first logging into eFiling, using biometric verification. This can be particularly useful for taxpayers who have changed their cellphone number or email address and are unable to receive an OTP.
Our tip:
Make sure SARS has your current cellphone number and email address so that important notifications and OTPs reach you.
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# WHAT SHOULD YOU DO NOW?
As we move into October, we recommend that individuals and businesses:
✅ Check whether your 2026 tax return has been submitted.
✅ Review your SARS assessment carefully.
✅ Employers should complete their EMP501 reconciliation before 31 October.
✅ Trustees should ensure their trust returns and IT3(t) submissions are up to date.
✅ Businesses should review their VAT and accounting records.
✅ Check that your SARS contact details are current.
✅ Review any outstanding SARS debt or unresolved tax matters.
✅ If you have historical tax errors or undeclared income, obtain professional advice about the appropriate way to regularise your tax affairs.
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# # TAX COMPLIANCE IS NOT A ONCE-A-YEAR EXERCISE
The tax environment continues to become increasingly digital and data-driven.
SARS is making greater use of information from employers, financial institutions and other third parties, while modernisation initiatives are moving the tax system towards more automated and connected reporting.
Being proactive can help reduce surprises, avoid unnecessary penalties and make managing your tax affairs considerably easier.
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