South Africa: SARS gives new update, deadline on tax returns — key details to know
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The South African Revenue Service (SARS) has officially extended the due date for submitting and paying the EMP201 form to Monday, 14 July 2025. This follows a technical disruption caused by unusually high volumes on 7 and 8 July, which significantly slowed down SARS’ eFiling and e@syFile™ systems.
In response, SARS exercised discretionary powers under Section 3 of the Income Tax Act to prevent non-compliant penalties for employers who were otherwise ready to meet their obligations. The extension provides employers with additional time to complete their returns and make payments without fear of penalties or interest.
What is the EMP201 and Why It Matters
The EMP201 is a mandatory monthly declaration submitted by employers to SARS. It covers amounts withheld from employees’ salaries, including Pay-As-You-Earn (PAYE), Unemployment Insurance Fund (UIF), and Skills Development Levy (SDL). Typically, this form—and payment—is due seven days after month-end, unless that date falls on a weekend or public holiday. The EMP201 plays a central role in SARS’ reconciliation process and affects the generation of employee IRP5 certificates. Delays or errors in submission can have wider implications for both employers and employees during the annual filing season.
What Triggered the Deadline Extension
On Monday, July 7, 2025, SARS systems experienced overwhelming traffic that slowed down submission processes on both the eFiling and e@syFile™ platforms. Many employers reported being unable to log in, submit EMP201s, or generate payment reference numbers (PRNs). Recognising that this situation could lead to unfair penalties, SARS responded swiftly by extending the deadline. This measure ensures that businesses are not penalised for delays caused by circumstances outside their control.
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What Employers Should Do Now
Employers are now urged to submit their EMP201 declarations and complete all related payments by 14 July 2025. Those who have already filed and paid can consider themselves compliant. However, any employers who were delayed should now take advantage of this extension to complete their filings without further delay. Submissions can be made via SARS eFiling or the latest version of e@syFile™ Employer (v8.0 or later). It’s essential that employers confirm the PRN is correct and retain proof of both submission and payment for their records.
Avoiding Penalties Beyond 14 July
SARS has made it clear that the extension is a one-time relief and applies only up to 14 July 2025. Beyond that date, any late submissions or payments will be subject to administrative penalties and possible interest. Employers may face 1% monthly penalties, escalating to a maximum of 10% of the outstanding amount. The leniency shown by SARS now should be seen as a rare opportunity, not a regular allowance, making it crucial for all employers to act before the new deadline passes.
In a statement on its website on Monday, July 8, 2025, SARS said:
The South African Revenue Service (SARS) yesterday experienced higher than expected volumes which caused our systems to respond longer than expected. We recognise that some employers experienced delays in submitting their monthly EMP201’s and as a result we will consider not imposing penalties and interest in relation to employers who would otherwise have been compliant.
This process of payment is governed by paragraphs 2(1) and 14(2) of the Fourth Schedule to the Income Tax Act 58 of 1962, which provides for the payment of Pay-As-You-Earn, (PAYE) Unemployment Insurance Fund (UIF) and Skills Development Levy (SDL) and the submission of the EMP201 form within a period of 7 days after the end of the month during which the amounts that were withheld from remuneration paid to employees.
In terms of section 3 of the Income Tax Act, the Commissioner for SARS has the discretionary power to extend the respective due dates. In the exercise of that discretionary authority, SARS Commissioner has extended the due date for filing and payment to Monday, 14 July 2025.
SARS Support and Guidance Available
To ensure a smoother process, SARS is providing support through its helpdesks, online FAQs, and updated user guides on its official website. Employers who are unsure how to proceed or are facing technical issues are encouraged to reach out early. SARS has also uploaded troubleshooting guides and system updates to assist with EMP201 submission using the latest eFiling tools and e@syFile™ software. This ensures that even employers with limited experience in digital filing can meet the deadline confidently.
Why This Update Matters for Businesses
This extension shows SARS’ willingness to support employers during unforeseen disruptions, but it also serves as a reminder of the need for digital readiness and proactive compliance. Employers must ensure their systems are updated, staff are trained, and filing is done ahead of time to avoid last-minute delays. This update also reinforces the importance of having contingency plans during peak filing periods, especially when dealing with sensitive payroll-related declarations.