Compliance Obligations For You And Your Business

• Companies and Intellectual Property Commission (CIPC)

All companies and close corporations are required by law to file their annual returns with CIPC within 30 days after the end of their financial year, each year. CIPC uses this information to ensure that it is in possession of the latest information of the company or close corporation and to determine whether the company or close corporation is actively conducting business activities.

• Income Tax

As soon as a company is registered, a unique income tax number is generated. Every company, or other juristic person, which is a resident that:

• • earned gross income of more than R1 000;
  • held assets with a cost of more than R1 000 or had liabilities of more than R1 000 at any time during the 2022 year of assessment;
  • derived any capital gain or capital loss of more than R1 000 from the disposal of an asset to which the Eight Schedule of the Income Tax Act applies, or
  • had taxable income, taxable turnover, an assessed loss or an assessed capital loss must submit a return.

The income tax return of a company must be submitted within one year following the end of the company’s financial year end.

• Provisional Tax

Every registered company is a provisional taxpayer and are required to make 6-monthly payments in advance towards their tax liability. The first provisional tax return must be submitted within the first 6 months of the start of the financial year and the second provisional tax return at the end of the year of financial year.

If a company has a December year-end, its first provisional tax return must be submitted and payment made by 30 June and the second provisional tax payment is due by 31 December.

• Employees’ Tax

Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable. The tax deducted from an employee’s remuneration is called PAYE (Pay As You Earn).

PAYE must be paid within seven days after the month end for which it was deducted. If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend.

An employer who is registered or required to register with SARS for PAYE and/or Skills Development Levy (SDL) purposes, is also required to register with SARS for the payment of Unemployment Insurance Fund (UIF) contributions to SARS.

• Value-Added-Tax (VAT)

If a company is a registered VAT vendor as defined, the company is required to submit VAT returns. The VAT submission periods are monthly, two-monthly, six-monthly or annually. The VAT returns for the period must be submitted by the 25th of the month following the end of the VAT period.

INDIVIDUALS

• Income Tax

Income tax is the normal tax which is paid on your taxable income (income you have earned less certain deductions).

You are liable to pay income tax if you earn more than:

• R91 250 if you are younger than 65 years.
• If you are 65 years of age to below 75 years, the tax threshold (i.e. the amount above which income tax becomes payable) is R141 250.
• For taxpayers aged 75 years and older, this threshold is R157 900.

You will be required to submit an annual income tax return if you are liable for taxes. The income tax return must be submitted by the dates issued by the Commissioner in a Government Gazette.

• Provisional Tax

Provisional tax is paid by individuals who earn income other than a salary / traditional remuneration paid by an employer. This is because they don’t pay tax via PAYE, like salaried employees.

Provisional taxpayers are required to submit two provisional tax returns (IRP6) during the tax year and make the necessary payment to SARS if a payment is due on the return. The first provisional tax return must be submitted within the first 6 months of the year and the second provisional tax return at the end of the year of assessment.

An individual that meets the provisional taxpayer definition is required to make its first provisional tax payment the 31 August and the second provisional tax payment is made by 28 February each year.

You can find out more about personal taxes in our blog article here.

Download our monthly checklist to ensure that you remain compliant for the year ahead. ????????

Compliance checklist Download