Question 1

What is a Company Income Tax Return?

Accepted Answer

A Company Income Tax Return (ITR14) is the official annual declaration submitted to SARS showing a company’s income, expenses, tax liability, and financial position.
It is required for all registered companies, even if dormant.

Question 2

Who must submit a company tax return?

Accepted Answer

All companies registered with CIPC must submit annual tax returns, including:
 • Pty Ltds
 • NPCs
 • Trusts
 • Co-operatives
 • Foreign-owned companies

Even if no trading occurred, a return is still required.

Question 3

What documents are required for an ITR14?

Accepted Answer

• Annual Financial Statements
 • Trial balance
 • Supporting schedules
 • Loan account details
 • Fixed asset register
 • Tax computation

Accurate documentation ensures compliance and avoids audit risk.

Question 4

When are company tax returns due?

Accepted Answer

Returns are due annually within 12 months after the company’s financial year end.

Question 5

What happens if a company does not submit its tax return?

Accepted Answer

SARS may impose penalties, issue estimated assessments, or block Tax Clearance.
Repeated non-compliance may trigger audits or legal action.

Question 6

What is an estimated assessment?

Accepted Answer

If SARS does not receive your return, they may issue an estimated assessment — usually higher than the correct amount — forcing the company to dispute or pay.

Question 7

Can a company be dormant and still file?

Accepted Answer

Yes. Dormant companies must still submit returns and indicate zero activity.

Question 8

How is company tax calculated?

Accepted Answer

Company tax is generally 27% of taxable income.
NPCs and other entities may have special rules depending on their structure.

Question 9

Can expenses be deducted?

Accepted Answer

Yes, legitimate business expenses such as rent, salaries, marketing, travel, and depreciation may be deducted — provided accurate records are kept.

Question 10

What happens if SARS audits the company?

Accepted Answer

SARS may request supporting documents such as invoices, bank statements, payroll records, and contracts.
We handle the audit response and documentation.

Question 11

Can a company revise its tax return?

Accepted Answer

Yes — if errors are found, the return may be amended within permitted timelines.

Question 12

Do small companies need audited financials?

Accepted Answer

Not always. Size and public interest score determine audit or review requirements.

Question 13

What is a Public Interest Score (PIS)?

Accepted Answer

A scoring system used to determine whether a company needs audited or reviewed financials.
It considers turnover, employee count, liabilities, and shareholders.

Question 14

Are director salaries deductible?

Accepted Answer

Yes — provided they are correctly recorded and subject to PAYE.

Question 15

Must capital gains be included?

Accepted Answer

Yes — capital gains tax applies to disposals of assets.

Question 16

What is provisional tax for companies?

Accepted Answer

Companies must pay provisional tax twice a year, based on estimated income.
These payments reduce year-end tax liability.

Question 17

What if a company pays tax late?

Accepted Answer

SARS may charge interest and penalties.
Persistent late payment affects compliance and Tax Clearance.

Question 18

Can company losses be carried forward?

Accepted Answer

Yes — assessed losses may be carried forward and used to reduce taxable income (subject to SARS rules).

Question 19

Can foreign-owned companies submit SA tax returns?

Accepted Answer

Yes — if they operate or earn income in South Africa.

Question 20

How long does the ITR14 process take?

Accepted Answer

2–10 working days depending on complexity and financial data availability.

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