Which companies should submit tax returns?

All registered companies in South Africa must submit tax returns to SARS, even if the company is dormant, not trading, or has no income. This includes private companies, close corporations, and non-profit companies. Failure to submit required returns can result in penalties and a non-compliant tax status.

What is provisional tax?

Provisional tax is a system that requires companies and certain taxpayers to pay income tax in advance based on estimated taxable income. Companies must submit two provisional tax returns (IRP6) during the year of assessment, with the second provisional tax payment usually due at the financial year end, such as 28 February for February year-end companies.

Should my company have financial statements?

Yes. All companies are required to prepare annual financial statements, regardless of turnover or trading activity. Financial statements are essential for tax compliance, provisional tax calculations, SARS submissions, funding applications, and statutory reporting. SARS may request financial statements even for dormant companies.

What happens if I don’t submit a tax return?

If a company fails to submit a tax return, SARS may impose administrative penalties, interest on outstanding tax, estimated assessments, and enforcement actions. Non-submission can also result in a non-compliant tax status, preventing the company from obtaining tax clearance certificates, funding, or government contracts.

February Year End Deadline: Financial Statements & Provisional Tax Due 28 February 2026

If your company has a February financial year end, February 2026 is a critical deadline month. Missing these submissions can lead to penalties, interest, non-compliance status, and business disruptions.

🚨 DO NOT WAIT UNTIL THE LAST MINUTE.

Below are the two mandatory submissions you must complete before 28 February 2026.

1️⃣ Financial Statements for the February 2025 Period

Deadline: 28 February 2026

All companies with a February year end are required to finalise and submit their Annual Financial Statements (AFS) for the February 2025 financial period.

Failure to prepare financial statements on time can result in:

❌ SARS non-compliance
❌ Issues with provisional tax calculations
❌ Delays in tax clearance and funding applications
❌ Risk of penalties and audits

👉 Your financials must be accurate, compliant, and ready before the deadline.

2️⃣ Provisional Tax Submission

Deadline: 28 February 2026

All provisional taxpayers with a February year end must submit their second provisional tax return (IRP6) and make payment on or before 28 February 2026.

Late or incorrect provisional tax submissions can lead to:

⚠️ Underestimation penalties
⚠️ Interest on outstanding tax
⚠️ Increased SARS scrutiny
⚠️ Cash flow pressure

👉 Your provisional tax is directly linked to your financial statements — delays cost money.

⏳ TIME IS RUNNING OUT – ACT NOW

February deadlines come fast and SARS does not grant extensions easily. Waiting until February puts your business at serious risk.

✔ Get your financial statements prepared
✔ Review your tax position early
✔ Submit provisional tax correctly
✔ Avoid penalties and stress

📞 Take action now to stay compliant before 28 February 2026.

For any assistance, complete the form below now!!