What is Third-Party Data?
Third-party data refers to information collected and submitted to SARS by entities other than the taxpayer themselves—banks, insurance companies, medical schemes, trusts, payroll agents, and non-profit organisations (especially Section 18A approved bodies) all play a role. This covers things like interest income, medical contributions, insurance payouts, donations, and trust distributions. (sars.gov.za)
Key Policy Update
The Bi-Annual Submission Period for third-party data in South Africa runs from 1 September to 31 October 2026, covering the reporting period 1 March to 31 August 2026. This is a mandatory window for all approved third-party data providers. (sars.gov.za)
Who is Affected?
- Employers and payroll agents submitting remuneration and PAYE information.
- Banks and financial institutions reporting interest, dividends, royalty payments.
- Medical schemes and insurers providing data for medical and insurance deductions.
- Section 18A approved non-profits reporting tax-deductible donation receipts.
- Trusts distributing vested income to beneficiaries. (sars.gov.za)
What You Must Do
- Register and activate required tax types on SARS eFiling if you haven’t already—e.g. IT3(b), IT3(d), IT3(t) etc.
- Choose the correct submission channel: test environment → HTTPS or Connect:Direct or eFiling (if low volume).
- Ensure data accuracy: Matching donor tax reference, correct amounts, proper formats as per SARS Business Requirement Specification (BRS).
- Submit on time: between 1 September and 31 October for the first half of the data year. No extensions. (sars.gov.za)
Common Problems & How to Avoid Them
| Issue | What Often Goes Wrong | How to Prevent It |
|---|---|---|
| Missing or mismatched donor tax reference numbers | Data missing or incorrectly entered | Request bulk tax ref numbers early; match donor info ahead of submission period. (sars.gov.za) |
| High volumes but using eFiling only | Files rejected or delayed | Use HTTPS or Connect:Direct for large files; activate appropriate channel. |
| Late submission or errors | Exclusion from Auto-Assessment; possible penalties | Assemble data in advance; run test submissions; allow time to correct issues. |
Example Scenario
A Section 18A charity (approved as an Exempt Institution) issued donation receipts in June and July 2026 totaling R150,000. The charity must submit an IT3(d) third-party data file for the period 1 March–31 August by 31 October 2026, including donor name & tax reference, donation amount, and any in-kind contributions. If no receipts were issued in that period, a Null Declaration is required. (sars.gov.za)
Implications for Taxpayers & Practitioners
- For individual taxpayers, this strengthens pre-filing and Auto-Assessment efforts: SARS uses third-party data to pre-populate returns and to verify amounts disclosed. Incomplete or missing data may lead to verification or audit.
- For entities (NPOs or Section 18A bodies), failure to submit properly risks non-compliance, possible reputational damage and tax penalties.
- Ensure coordination between accounting, donor management, payroll and compliance teams to avoid data silos and errors.
Action Plan Checklist
- Identify which data types your organisation must report (IT3(b/c/d/t), S18A receipts, etc.).
- Determine submission channels and capacities (file size, number of receipts, etc.).
- Set internal timelines: data collection → verification → test submission → live submission.
- Train or appoint responsible personnel (technical user, registered representative) with access rights and knowledge of SARS requirements.
- Use SARS guides (such as the External BRS, HTTPS/Connect channels) and public FAQs proactively. (sars.gov.za)
Conclusion
In 2026, South Africa’s SARS expects high accuracy and exact timing when it comes to third-party data submission. If you’re a provider of any such data type—financial institution, charity, employer, medical scheme—you must prepare early and ensure your systems are ready. Non-compliance isn't just inconvenient—it can impact taxpayers’ rights, delay filing, and potentially trigger penalties or loss of benefits like Auto-Assessment. Staying informed, using the correct submission channel, and having a clean internal process are your best defenses.