Missed the IRP6 Deadline? SARS Penalties May Be Only the Beginning
For companies with a February year-end, the first IRP6 provisional tax return and payment for the 2027 tax year were due on 31 August 2026. If your company missed this SARS deadline, the consequences could extend beyond one late return. Penalties, interest, and outstanding submissions can place pressure on cash flow and contribute to a non-compliant tax status — and IRP6 is rarely the only thing falling behind. Companies that miss this deadline often have ITR14, VAT, payroll, CIPC, or COIDA obligations at risk too, each with its own penalties and deadlines. The longer the problem is ignored, the more difficult and expensive it may become to correct.
What Happens If You Miss the IRP6 Deadline?
Most companies must submit two provisional tax returns during each financial year. Companies with a February year-end generally submit their first IRP6 at the end of August and their second at the end of February. An IRP6 may still be required even when the calculation shows that no provisional tax is payable.
According to the official SARS Guide to Provisional Tax, a late first- or second-period provisional tax payment can attract a 10% penalty, together with interest. If an estimate is not submitted, SARS may estimate the company’s taxable income and determine the amount payable.
Submitting late is not the only risk. The estimate must also be calculated accurately.
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Underestimating or Overestimating Provisional Tax Can Cost You
A qualifying underestimate on the second IRP6 can result in a 20% underestimation penalty, calculated according to the statutory thresholds and formulas.
Overestimating provisional tax does not ordinarily attract a SARS penalty. However, it can still be costly for the business. Paying too much provisional tax means that operating cash may remain with SARS until the company is assessed and any refund is processed.
This means:
- Underestimating could result in penalties and interest.
- Overestimating could place unnecessary pressure on cash flow.
Provisional tax should never be based on guesswork. A reliable estimate requires current information about the company’s income, expenses, payroll, allowable deductions and expected financial performance.
This is why proper monthly accounting is so important. When financial records are updated throughout the year, an accountant can calculate a more accurate provisional tax estimate and identify potential problems before the deadline arrives.
Missing an ITR14 Deadline Can Trigger Recurring Penalties
The ITR14 is a company’s annual income tax return and must generally be submitted within 12 months after the company’s financial year-end.
This obligation does not disappear because a company did not trade, earned no income, or made a loss. Dormant and inactive companies may still have tax returns that must be submitted.
If a company fails to submit its ITR14 after receiving a final demand from SARS, recurring administrative penalties may apply. Depending on the company’s taxable income, these penalties can range from R250 to at least R16,000 for every month of non-compliance. More information is available from the official SARS Corporate Income Tax guidance.
Late VAT201 Returns and Payments Can Damage Cash Flow
VAT vendors generally submit VAT returns monthly or every two months, depending on the tax period allocated by SARS. Late VAT payments can attract a 10% penalty plus interest. Outstanding or inaccurate returns may also delay VAT refunds, trigger verification, or contribute to a non-compliant tax status.
Businesses should confirm their submission and payment dates using the official SARS VAT Guide.
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EMP201 and EMP501 Deadlines Carry Serious Consequences
Employers must submit monthly EMP201 declarations and pay PAYE, UIF and SDL within seven days after the end of the month. If the seventh day falls on a weekend or public holiday, payment must generally be made on the previous business day.
Late or incorrect submissions and payments may result in penalties and interest.
Employers must also submit EMP501 reconciliations during the filing periods announced by SARS. According to SARS PAYE guidance, a late or incomplete EMP501 can attract a penalty equal to 1% of the annual PAYE liability. This increases by 1% for every month the return remains outstanding, up to a maximum of 10%.
Employers may also lose unclaimed Employment Tax Incentive benefits if they remain non-compliant.
SARS Is Not the Only Compliance Deadline to Watch
Tax deadlines often receive the most attention, but CIPC and Compensation Fund obligations can be just as important.
CIPC Annual Returns and Beneficial Ownership
CIPC Annual Returns are separate from SARS tax returns. Companies and close corporations must submit an Annual Return every year within the prescribed period following their registration anniversary.
Companies must also ensure that their Beneficial Ownership information is current as part of the annual compliance process.
Non-compliance can result in late fees, compliance notices, and eventually deregistration. Final deregistration removes the company’s legal existence and may disrupt banking, contracts, funding applications, and trading activities.
Business owners can consult the official CIPC Annual Return filing platform for more information.
How Company Partners Can Assist
Company Partners can help you identify outstanding obligations, correct compliance problems and introduce systems to prevent future deadlines from being missed.
Fix the Deadline Before It Becomes a Backlog
Missing one deadline does not mean your business cannot restore its compliance. However, acting quickly matters.
A late IRP6 can attract penalties and interest, while an inaccurate estimate could either expose the company to an underestimation penalty or unnecessarily tie up cash. When other tax, CIPC or COIDA submissions are also outstanding, the financial and operational risks can grow rapidly.
Good compliance is not only about remembering dates. It depends on accurate records, reliable calculations and professional oversight throughout the year. Proper monthly accounting gives your business a clearer view of its tax obligations and reduces the risk of costly last-minute estimates.
Company Partners can review your position, identify what is outstanding, and help you put a practical compliance plan in place.
