South Africa: Reminder for employers to submit employees’ annual tax reconciliations

South Africa: Employees’ tax reconciliations

Employers and third-parties (such as banks) are required to provide the South African Revenue Service (SARS) with relevant data in order to pre-populate the annual income tax returns (forms ITR12) for natural persons before the start of the filing season for the annual tax return for natural persons (usually beginning in July/August following the February tax year-end).


Employers must by 31 May 2021, submit their employees’ annual tax reconciliation (form EMP 501) to SARS, in order to mitigate the risk of penalties on the late submission of this filing obligation. Part of this employer reconciliation process is for employers to issue the 2020/2021 employees’ tax certificates (forms IRP5) which will be used to pre-populate the ITR12s.

Failure to take timely action can result in penalties for employers.

Read a March 2021 report [PDF 361 KB] prepared by the KPMG member firm in South Africa

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us