Business

SARS announces tax change for 2026

Staff Writer

 ·25 Nov 2025

SARS has urged employers in South Africa to start preparing for the 2026 Employer Filing Season, noting changes taking effect early next year.

The Revenue Service stated that, as of February 2026, employers will no longer be able to submit Pay As You Earn (PAYE) reconciliations without a valid Income Tax Reference Number for all employees.

This relates to employees who are required to register in terms of section 67 of the Income Tax Act (mandatory registration of individuals as taxpayers).

Previously, missing numbers triggered warnings and allowed time for employers to make corrections.

“This grace period ends with the 2026 season. Reconciliations without valid Income Tax Numbers will be rejected and non-compliance will result in administrative penalties,” SARS said.

The taxman said that employers should start preparing for this change and the end of the grace period now to avoid last-minute changes and penalties.

To prepare:

• 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.
• Use Tax Reference Number (TRN) Enquiry Services on eFiling
• Individuals can register or retrieve their own tax numbers on the SARS website under the “Individuals” section.

SARS said that employers should refer to BRS – PAYE Employer Reconciliation for 2025 / 2026 for the latest rules.

While filing season has ended for individual taxpayers (20 October 2025), tax season for provisional taxpayers and trusts is still open.

The final deadline for provisional and non-provisional trust tax return (ITR12T) submissions is 19 January 2026.

Notably, provisional taxpayers are currently making payments for the 2026 tax year. For the 2025 tax year, provisional taxpayers still have until 19 January 2026 to file their tax returns for the 2025 tax year.

• SARS’s Provisional Tax Guide can be found here.

Big businesses in focus

SARS has also formally launched the Large Business Forum, which will focus the revenue service’s attention on what is describes as “key taxpayers” across various sectors.

It noted that the entire large and international business (LIB) segment collectively contributed R600 billion in taxes in the 2024-2025 financial year, and the forum is the first of many that will be held to engage with the sector.

The revenue service stated that it is working closely with large businesses to simplify compliance, while also focusing on risk management and addressing non-compliance.

Through the forum, SARS hopes to deal with the unique circumstances tied to various segments and to develop a “relationship model” with big business and open lines of clear communication.

In the 2024/25 tax year, SARS collected close to R120 billion through risk management and LIB compliance measures, which it hopes to expand in 2026 and going forward.

“Given the complexity of corporate tax matters, SARS works closely with these corporations and their tax advisers to simplify and find solutions to tax-related challenges,” SARS said.

“This collaboration deepens understanding, builds trust, and strengthens the partnership between SARS, businesses, and their advisers.”

SARS commissioner Edward Kieswetter said that the goal is cooperation, and that “true tax compliance” is not necessarily enforced, but understood that it forms part of a social good.

However, he said that voluntary compliance is earned through mutual trust, professionalism, ethical engagement, and genuine partnership, which is SARS’ goal.

SARS said the forum will have terms of reference and will make a decision on the frequency of meetings and how the business of the Forum will be conducted.