SARS has informed employers throughout South Africa that they should begin their preparations for the 2026 Employer Filing Season, explaining that several procedural adjustments will come into effect at the start of next year. This represents one of the most significant shifts in PAYE compliance in recent years, signalling that SARS is moving away from a tolerance-based approach to a strict verification model.
Key Takeaways
- Mandatory TRNs for all employees: From February 2026, employers must ensure every employee has a valid Income Tax Reference Number before submitting PAYE reconciliations.
- End of grace period: Previous warnings for missing tax numbers will no longer be issued, and non-compliant submissions will be rejected with administrative penalties.
- Proactive preparation is essential: Employers are advised to audit employee records and integrate tax number verification into payroll processes to avoid disruptions and potential fines.
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Employers Advised to Confirm Employee Tax Numbers Ahead of 2026 PAYE Compliance Changes
SARS indicated that from February 2026, no employer will be able to submit Pay As You Earn reconciliations unless every employee listed has a valid Income Tax Reference Number. Employers who fail to comply risk rejection of submissions, which could disrupt payroll cycles and trigger cash flow issues if not managed proactively.
This requirement applies to employees who must be registered in line with section 67 of the Income Tax Act, which deals with the compulsory enrolment of individuals as taxpayers.
Less than 70 percent of South African employees currently have registered tax numbers, which means a significant portion of employers may need to act swiftly to update their records.
In previous years, when an employer submitted a reconciliation with missing tax numbers, the system issued warnings and provided a period for employers to correct the information.
SARS clarified that this leeway ends with the 2026 cycle, and any reconciliation submitted without the correct Income Tax Reference Numbers will be rejected outright, with administrative penalties applied to non-compliant cases.
These penalties can range from R1 000 to tens of thousands depending on the size of the business and the number of missing numbers.
The authority encouraged employers to begin adapting their systems and checking their employee records as early as possible in order to avoid last minute complications and unnecessary penalties.
Steps for Compliance with the Updated Requirements
To ensure compliance, employers are advised to make use of the ITREG and BundleReg processes available on eFiling or e@syFile, the Tax Reference Number Enquiry Service on eFiling, or to visit a SARS branch by appointment to register or retrieve employees’ tax numbers.
They should also make frequent use of the Tax Reference Number Enquiry Services on eFiling to verify existing information and update incorrect entries.
Individual taxpayers are still able to register for a tax number or retrieve an existing one by using the dedicated tools on the SARS website under the Individuals section.
SARS reminded employers to consult the latest version of the BRS for PAYE Employer Reconciliation for 2025 and 2026, as this document contains the updated rules that must be applied.
Tip: Keeping a digital copy of the BRS and highlighting changes from previous years can make compliance checks much quicker.
Although the filing season for individual taxpayers concluded on 20 October 2025, the filing window for provisional taxpayers and trusts remains open.
The deadline for both provisional and non-provisional trusts to submit their ITR12T tax returns is 19 January 2026.
At the same time, provisional taxpayers are currently making their payments for the 2026 tax year, and they still have until 19 January 2026 to finalise their tax returns for the 2025 year of assessment.
Taxpayers can consult SARS’s Provisional Tax Guide for a detailed explanation of obligations, dates, and payment rules.
SARS Intensifies Engagement with Large Corporate Taxpayers
SARS has formally launched the Large Business Forum, a platform designed to concentrate on what the organisation refers to as key taxpayers operating across a variety of industries. This initiative aims to bring large corporates and SARS into a more collaborative relationship, moving beyond enforcement to proactive partnership.
SARS reported that the large and international business segment contributed approximately R600 billion in tax revenue during the 2024 to 2025 financial year, and the newly established forum is the first in a series of engagements intended to strengthen cooperation with this sector.
This R600 billion contribution represents nearly half of SARS’s total annual collections, underscoring the importance of these taxpayers.
Streamlining Compliance and Risk Management
The authority explained that it is working more closely with major corporations to streamline compliance processes, refine risk assessment, and improve the handling of non-compliant behaviour.
Through the activities of the forum, SARS aims to better understand the unique conditions within different industries and to develop a structured relationship model that encourages more open and effective communication with big business.
Strong Compliance Gains Recorded in 2024 and 2025
During the 2024 and 2025 tax year, SARS collected close to R120 billion through targeted risk management actions and improved compliance activities within the large and international business environment, and it intends to expand these efforts during 2026 and in future tax cycles.
SARS stated that given the complexity associated with corporate taxation, its teams collaborate with large companies and their appointed advisers to clarify rules, streamline administrative obligations, and seek practical solutions to technical difficulties.
This cooperative approach is intended to deepen mutual understanding, strengthen trust between the parties, and reinforce the ongoing partnership that SARS seeks to maintain with the corporate sector and with professional advisers.
Tip: Transparent reporting and early engagement with SARS can lead to smoother audits and even reduced risk penalties.
SARS Commissioner Edward Kieswetter emphasised that the organisation aims for constructive cooperation, noting that genuine tax compliance is achieved not only through enforcement but also through recognition that contributing to the fiscal system forms part of a wider social responsibility.
Advancing a Compliance-First Corporate Culture
He added that voluntary compliance is built on mutual trust, professional conduct, ethical interaction, and a sincere commitment to partnership, principles that SARS intends to advance through its engagement with businesses.
SARS confirmed that the Large Business Forum will establish terms of reference and will determine how frequently meetings will take place, as well as how the forum’s work will be organised and executed.
Conclusion
As South Africa approaches the 2026 tax year, SARS is signalling a more rigorous approach to compliance for both employers and large corporate taxpayers. With mandatory Income Tax Reference Numbers required for all employees and the end of previous leniency periods, businesses are urged to review and update their records promptly to avoid penalties and disruptions. At the same time, the launch of the Large Business Forum highlights SARS’s commitment to fostering collaboration, risk management, and transparent communication with key corporate contributors. Proactive preparation, regular audits, and early engagement with SARS will be essential for ensuring smooth compliance and maintaining a strong working relationship with the revenue service.
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