Turnover Tax Deadline: First Payment Due 29 August
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If your small business is registered for Turnover Tax, your first payment for the 2025/2026 tax year is due by 29 August 2025—and SARS won’t accept excuses for missed deadlines.
What is Turnover Tax?
Turnover Tax is a simplified tax system for micro businesses with a turnover of R1 million or less per year. Instead of paying multiple taxes (like VAT, income tax, and provisional tax), qualifying businesses pay a single tax based on their turnover—not profit. The first payment is due on 29 August 2025, and the second payment is due on 28 February 2026.
This system reduces red tape but comes with strict responsibilities. Registered entities make payments twice a year, on
Steps to Take Before 29 August 2025
Calculate your turnover accurately and determine the tax due. Complete and file the TT03 annual return (TT03 Turnover Tax Annual Return).
Complete and submit your TT02 Payment Advice form with your estimated turnover for the first 6-month period.
Make the payment to SARS by 29 August to avoid penalties.
Keep detailed records—invoices, receipts, and calculations to back up your figures.
If you haven't yet registered for Turnover Tax, you must do so before the start of the tax year or within two months of starting your business (see TT01-How to Register for Turnover Tax).
What Happens If You Miss the Deadline?
SARS charges:
10% late penalty on missed or late TT02 submissions.
20% underpayment penalty if you pay less than 90% of the total tax due.
Interest, charged daily, until the outstanding amount is paid.
For Example:
You estimate and pay R10,000, but your actual tax due is R15,000.
Shortfall = R5,000 → more than 10% underpaid.
SARS may charge:
R1,000 penalty (20% of the shortfall)
Plus interest from 29 August until payment is made.
Get more information about turnover tax on the SARS website.
