Closing the 2025/2026 Tax Year & Starting the 2026/2027 Tax Year
This timeline guides employers through the key payroll, tax, and statutory activities required at South African tax year end, as well as the start of the new tax year
February – Preparing for Tax Year End
What happens in February?
February marks the end of the tax year. This is when payroll data must be finalised, validated, and reconciled to ensure accurate tax certificates and statutory submissions.
Important dates
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What you should do
- Validate payroll data
Print the IRP5/IT3a Validation Report to identify missing information or potential errors before year‑end. - Reconcile statutory values
Use the EMP501 History Report to reconcile payroll values with monthly EMP201 declarations and payments for:- PAYE
- SDL
- UIF
- ETI
- Complete your final payroll run for the 2025/2026 tax year.
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When starting your March payroll, a Tax Year End Instance of February is created automatically.
This instance is used to generate tax certificates and SARS submission files.
March – Starting the New Tax Year
What happens in March?
March is the first month of the new tax year and introduces updated tax legislation, tables, and payroll software changes.
Important dates
* Release date not confirmed as yet, subject to South African budget speech impact. |
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What you should do
- Update your live payroll system to Release 6.6a
This update is mandatory for all users and ensures compliance with 2026/2027 South African tax legislation. - Attend the Annual Payroll Tax Update
Join the 2026 payroll tax update webinar presented by Rob Cooper to understand legislative changes. - Review and validate payroll records
Re‑run the IRP5/IT3a Validation Report to confirm all employee data is complete and correct. - Reconcile year‑end data
In your Tax Year‑End Instance, reconcile payroll values to EMP201 declarations and payments if not already done.
April – Annual Reconciliation & Statutory Submissions Begin
What happens in April?
April marks the start of the Employer Annual Reconciliation submission period and other statutory reporting obligations.
Important dates
** Even though the official submission date for ROE is 31 March, in practice the submission period starts in April and continue to May/June. Keep an eye on the Community Hub for confirmation of these dates. Submission period subject to change. |
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What you should do
- Validate and reconcile payroll data
Review payroll records and ensure IRP5/IT3a data is accurate. - Submit Employer Annual Reconciliation
File the EMP501 and tax certificates via SARS e@syFile™ Employer once the filing season opens. - Submit Return of Earnings
Submit the ROE 2025/2026 to the Compensation Fund when submissions open. - Submit Workplace Skills Plans and Actual Training Report to SETA
Contact your SETA to confirm your submission deadline and method to submit the reports
May – Finalising Annual Submissions
What happens in May?
May is the final month to submit the Employer Annual Reconciliation to SARS.
Important dates
** Even though the official submission date for ROE is 31 March, in practice the submission period starts in April and continue to May/June. Keep an eye on the Community Hub for confirmation of these dates. Submission period subject to change. |
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Tip: Submitting early helps avoid system congestion and long support queues close to the deadline.
What you should do
If you have not yet submitted:
- Re‑check payroll records and IRP5/IT3a validation reports.
- Reconcile payroll values with EMP201 declarations and payments.
- Submit the EMP501 and tax certificates via SARS e@syFile™ Employer before 31 May 2026.
- Submit the Return of Earnings 2025/2026to the Compensation Fund.**