- Employers Face Tougher Filing Rules Under New Compliance Framework
South Africa to Enforce Mandatory Income Tax Numbers for All Employees from 2026, SARS Warns. The South African Revenue Service (SARS) has issued a fresh notice to employers, urging them to begin immediate preparations ahead of the 2026 Employer Filing Season, as the era of leniency on missing Income Tax Reference Numbers officially comes to an end.
SARS confirmed that from February 2026, no employer will be able to successfully submit their PAYE reconciliation if any employee—who is required to be registered—does not have a valid Income Tax Number on record.
Grace Period Ends: No More Warnings for Missing Tax Numbers
In previous filing cycles, SARS’s e@syFile™ system allowed PAYE submissions even when employee tax numbers were missing, issuing only warning prompts.
That window closes in 2026.
SARS stated that all reconciliations without valid tax reference numbers will be rejected outright, and companies that fail to comply will incur administrative penalties under the Income Tax Act.
Tax practitioners note that this marks one of the strongest enforcement steps taken by SARS in recent years, forming part of broader measures to tighten payroll tax compliance, expand the tax register, and reduce under-declaration.
Registration Pathways for Employers
To ease the transition, SARS outlined several channels employers can use to register employees who lack Income Tax Numbers. These include:
1. e@syFile™ Employer
- ITREG for individual employee registration
- BundleReg for bulk onboarding of multiple employees
2. eFiling
- Batch submissions of up to 200 employees at a time
3. Tax Reference Number (TRN) Enquiry Services
- Accessible via eFiling to check existing numbers or request new ones
4. SARS Branches
- In-person manual registration (appointment required)
Compliance advisers warn that employers with large workforces—especially in retail, mining, agriculture, and manufacturing—should prioritise batch registrations early to avoid system congestion next year.
See: Nigeria’s Top Corporates Remit N2.55 Trillion CIT in 9 Months
How Employees Can Self-Register
Employees who prefer to handle their own registration have several digital and mobile options:
- SARS eFiling – Self-service online registration
- SOQS – SARS Online Query System
- WhatsApp – Save 0800 11 7277 and send “Hi” to begin
- USSD – Dial 1347277# for quick access
SARS emphasised that these channels remain the fastest way for individuals to verify their tax status before the new filing obligations commence.
Why This Matters: Stronger Oversight Ahead
Tax analysts say the 2026 rule aligns with SARS’s intensified compliance strategy, including:
- Closing gaps in PAYE reporting
- Increasing transparency in payroll deductions
- Ensuring all qualifying workers are added to the national tax register
- Strengthening data-driven enforcement using third-party information
With PAYE forming one of the largest components of South Africa’s revenue base, the move is expected to significantly improve accuracy in employer submissions and reduce leakages.
Final Reminder to Employers
SARS has encouraged businesses to start the registration process now, warning that last-minute submissions in early 2026 may lead to:
- rejected returns,
- administrative penalties, and
- delays in issuing employee certificates.
The revenue authority reiterated that readiness ahead of the filing season is the most effective way to avoid compliance setbacks.
