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SARS compliance reminders

Your SARS Compliance Checklist for South African SMEs

Stay Compliant, Stay Confident

As an SME owner in South Africa, keeping up with SARS requirements can feel like chasing a moving target. But the truth is, staying compliant doesn’t have to be stressful — not when you know exactly what’s expected. Whether you’re new to business ownership or simply want to avoid costly penalties, this checklist will help you get organised, stay ahead of deadlines, and keep your books in good standing.

Here’s what every South African SME needs to file each year:

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1

Annual Income Tax Return (ITR14)

If your SME is a registered company or close corporation, you’re required to file an ITR14 with SARS every year. This must be submitted within 12 months of your financial year-end. It includes your income, expenses, and supporting financial statements.

Tip: Don’t wait until the last minute — preparing financial statements early makes tax time far less stressful.

2

VAT Returns (VAT201)

If your business is VAT-registered, you’ll need to submit VAT201 returns either monthly or every two months. These returns declare the VAT you’ve collected and paid.

Tip: Ensure your bookkeeping is kept up to date — VAT errors are a common compliance issue and can trigger audits.

3

PAYE and EMP501 Reconciliation

If you employ staff, you must submit monthly PAYE (Pay-As-You-Earn) returns and twice-yearly EMP501 reconciliations (in April/May and September/October). These show SARS that you’ve paid the correct tax on behalf of your employees.

Tip: Payroll software or outsourcing this task can save time and reduce mistakes.

4

Provisional Tax (IRP6)

If your SME earns income not subject to PAYE, you must submit IRP6 returns in August and February each year. This allows SARS to collect estimated tax in advance.

Tip: Missing these can lead to underpayment penalties, even if your ITR14 is submitted correctly.

5

Tax Clearance Certificate

Many SMEs need this certificate to apply for funding or tender for government work. While not a filing obligation, your SARS account must be up to date with no outstanding returns or debts to qualify.

Tip: Keep your compliance in check throughout the year so you can request this at any time.

6

Supporting Financial Statements

Your business must maintain accurate records of its financial activities and submit them alongside the ITR14. These include your balance sheet, income statement, and cash flow statement, all in compliance with IFRS for SMEs.

Tip: This is where having an accountant truly pays off — professional statements boost your credibility and compliance.

When SARS compliance is done right, it protects your business, builds trust with clients and lenders, and keeps stress levels low. If you’re feeling unsure or overwhelmed, SG&CO can handle your tax, reporting, and compliance needs — so you can focus on growing your business.

Get in touch with SG&CO today.

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