FAQs

Services, submissions and qualifications

We supply a wide scope of services:

  • We calculate and submit your personal income tax returns and provisional returns
  • If you have a business, we can process all the paperwork onto accounting software (we use QuickBooks® desktop software and QuickBooks® Online).  We can then supply you with monthly management reports.
  • We calculate and submit the business statutory returns (VAT, PAYE, UIF and WCA returns)
  • We also supply secretarial services for companies and CC’s.
  • If you need a new company, we can register this on your behalf.
  • If you need a trust we can refer you to a reputable service provider (IPMG – Trust and Fiduciary Services)
  • We are independent resellers of QuickBooks® Desktop software and QuickBooks® online and can supply you with their full range of products which include payroll software. We also provide training and support to small business who use QuickBooks® Desktop software and QuickBooks® online to do their financial reporting and bookkeeping.
  • We handle all types of registrations on your behalf – SARS (IT/VAT/PAYE/Customs), UIF and WCA

We have the required qualifications and experience to supply you with  accurate and professional services.  We are required to get continual education and have to report these hours to the institutes we belong to.  If we do not get the required hours, we can lose our license to practice and represent you at SARS.

Nedelene – NHD in Internal Auditing and a B Tech Taxation, 10 years working experience as an auditor in the SARS VAT and multi tax department.

Carli – Financial Management National Diploma

Alessandra is busy acquiring her certificates in bookkeeping and payroll.  Next year she will be doing a higher certificate in taxation on a NQF level 6.

We notify you by email and we follow up on a regular basis if we require info.

  • For Annual Financial statements we start sending out emails around March and April.
  • Income Tax – we start requesting info from April/May as the tax season only starts on 1 July.
  • VAT – On the 1st of each month, we send out a reminder that the info for your VAT return is due for submission.
  • PAYE – If we do not have info by the end of the month we will either email you or phone you to request the required info.

Tax

People who pay income tax are generally individuals who earn an income e.g. from a salary, commission, fees, etc.

If you earn under R500 000 for a full year from one employer (that’s your total salary income before tax) and have no other sources of additional income (for example, interest or rental income) and no deductions that you want to claim (for example medical expenses, travel or retirement annuities), then you don’t need to submit a return.

Corporate tax includes tax paid by companies or close corporations, as well as trusts, on their annual income.

Most of the State’s income is derived from Income Tax (personal and corporate tax), although nearly a third of total revenue from national government taxes comes from indirect taxes, primarily Value-Added Tax (VAT).

Tax Season 2019 starts 1 July 2019.

People who pay income tax are generally individuals who earn an income (from a salary, commission, fees, etc.).

Corporate tax includes tax paid by companies or close corporations, as well as trusts, on their profit.

Most of the State’s income is derived from Income Tax (personal and corporate tax), although nearly a third of total revenue from national government taxes comes from indirect taxes, primarily Value-Added Tax (VAT).

Non-residents

South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of where their income was earned. By contrast, non-residents are taxed on their income from a South African source.

Non-residents pay tax on their income from a South African source.

This basic Tax Calendar has been developed to provide a guide to taxpayers about the key deadlines for the main segments of taxpayers.

Individuals

  • Tax Season – Tax Season for individuals normally runs from July to November (for non-provisional taxpayers), with provisional taxpayers having until end January to file via eFiling.
  • Provisional Tax – The filing and payment by individuals of provisional tax (IRP6’s) is 31 August (1st period), 28 February (2nd period) and 31 September (3rd period)

Employers (PAYE)

All businesses that are required to register for PAYE, must follow the schedule below:

  • Monthly – the EMP201 must be submitted monthly – by the 7th of the following month or the Friday* before that day if the 7th falls on a weekend or public holiday.
  • Interim (for period 1 March to 31 August) – the Interim Employers Tax Season for EMP501 reconciliations runs from 1 September to 31 October
  • Annual (for period 1 March to 28 February) – the annual Employers Tax Season runs from 1 April to 31 May.

Companies

  • Tax Season – Companies, including CC’s, Cooperatives and Body Corporates, are required to submit a Return of Income: Companies and Close Corporations (IT14) within 12 months from the date on which their financial year ends.
  • Provisional Tax- The filing and payment by companies of provisional tax (IRP6’s) is 6 months after year end (1st period), At financial year end (2nd period) and Six months after financial year end (3rd period)

Vendors

VAT

  • Manual – submission of the VAT201 and payment must be done by the 25th of the month. It should be noted that each vendor may be on a different VAT cycle
  • Electronic (eFiling) – submission and payment of the VAT201 must be done by the last business day of the month

Small business

Small businesses which fall into one of the categories above (CC, Co-operatives) must follow the schedule outlined above.

  • Turnover tax

Small businesses which are registered for Turnover Tax must follow the schedule below:
Turnover tax will be levied annually on a year of assessment that runs from the beginning of March of the one year to the end of February of the following year. It will include two six-monthly interim (provisional) payments.

Please Note

*If the day identified is on a weekend or public holiday, the applicable date to fulfil your obligation is the last business day prior to that date.

IMPORTANT DATES

https://www.sars.gov.za/Pages/Important-Dates.aspx

What’s New?

From 1 April 2016, manual forms of payments will no longer be accepted by SARS:

Payments will have to be done electronically or in the banks. This effort is undertaken to streamline operations and enhance efficiencies at SARS branches. Therefore, the ‘Payments Queue’ at SARS branches will cease to exist. In addition, no cheques (either posted or dropped off at SARS drop-boxes) will be accepted.

Please note that this change excludes Customs. Taxpayers have the following existing options to make payments:

  • At your bank
  • Via eFiling
  • Via Electronic Funds Transfer  (EFT)

More info will be shared in due course.

How do I pay?

Do you have outstanding taxes? Do you need help deciding what to do or whom to call?

Taxpayers, both individuals and businesses, are required to be fully tax compliant through on time submission of returns and payments, to avoid penalties and interest being charged.

Important – If the submission date falls on a weekend or public holiday, you need to submit the return/declaration together with your payment, if applicable, by the last business day before the weekend or public holiday.

In instances where taxpayers are not compliant and have outstanding tax debt, the Debt Management department is committed to assisting businesses and individuals to become fully compliant.

If you want to make a payment to SARS, there are a number of options e.g. at a bank, via eFiling, via EFT and at a branch.

If you need to change your banking details you can do it:

  • On eFiling if you’re a registered eFiler (Credit push)
  • In person at any SARS branch if you’re not registered with eFiling, or
  • When completing and submitting your Income Tax Return for Individuals (ITR12).

Close Corporations 

No, after the implementation of the new Companies Act (Act 71 of 2008) no CC can be registered and no conversions from Companies to CCs will be allowed. However, the existing CCs will be maintained.

No, a trading name should not be reflected on the close corporation forms. The Close Corporations Act stipulates that the registered name and number, as allocated by this office, must always be used.

No, only a natural person or a inter vivos trust/testamentary trust can become a member.

Some special characters are accepted on documentation and registered as such, but for the purpose of searching a name correctly and decisively these characters are omitted from the database system. Special characters associated with domain names are not allowed. Although the Companies Act makes provision for names containing special characters, this will only be allowed in due course.

Companies

  • Private company (Pty) Ltd
  • Public company (Ltd) 
  • State-owned company (SOC) 
  • External company 
  • Personal liability company (Inc) 
  • Non-profit company (NPC)

Private companies are comparable to companies of the same status under the Companies Act, 1973 and are characterised by the following:

  • They are subject to fewer disclosure and transparency requirements.
  • A private company will still be prohibited from offering its shares to the public and the transferability of its shares will be restricted, but it may now have more than 50 shareholders. 
  • The name of a private company must end with the expression “Proprietary Limited” or its abbreviation “(Pty) Ltd”. 
  • The board of a private company must comprise at least one director, or any other minimum number as stipulated in its MOI. Each incorporator is a first director of the company.

A non-Profit Company is a company that is incorporated for a public benefit or other object as required by Item 1(1) of Schedule 1 of the Companies Act.  Its income and property are not distributable to its incorporators, members, directors, officers or persons related to any of them, except as reasonable compensation for service rendered. Three (3) persons and 3 directors may form an NPC.

They are incorporated for a “public benefit purpose”.

Income and property may not be distributed to the incorporators, members, directors or officers of a non-profit company, except for reasonable compensation for services rendered by them. 

  • The name of a non-profit company will end with “NPC”. 
  • A minimum of three persons, called incorporators, must complete and sign the MOI. 
  • A minimum of three directors must be appointed.
  • All of a non-profit company’s assets and income must be used to advance its stated objectives, as set out in its MOI. 
  • Non-profit companies are subject to a varied application of the Act, as set out in section 10.

A special set out fundamental rules for non-profit companies is set out in Schedule 1 of the Companies Act, 2008. According to these rules, the objects of non-profit companies remain subject to the current principles. Furthermore, on their dissolution, non-profit companies are restricted in terms of the distribution of any residual assets. These special rules also include various other matters unique to non-profit companies.

Annual Returns

Due to security concerns relating to the disclosure of personal information CIPC has affected the following changes relating to annual returns:

  • Only the first 6 digits of a director’s or member’s identity number will be displayed; and
  • The annual return filing certificate will not display the identity number, addresses, or contact details     of  a director or member.

All companies (including external companies) and close corporations are required by law to file their annual returns with the CIPC on an annual basis, within a prescribed time period. The purpose for the filing of such annual returns is to confirm whether a company or close corporation is still in business/trading, or if it will be in business in the near future.

Therefore, if annual returns are not filed within the prescribed time period, the assumption is that the company or close corporation is inactive, and as such CIPC will start the deregistration process to remove the company or close corporation from its active records. The legal effect of the deregistration process, is that the juristic personality is withdrawn and the company or close corporation ceases to exist.

The CIPC will assume that the company or close corporation is inactive, and as such CIPC will start the deregistration process to remove the company or close corporation from its active records. The legal effect of the deregistration process, is that the juristic personality is withdrawn and the company or close corporation ceases to exist.  

The Companies Act, 2008 and the Close Corporations Act, 1984 require the company or close corporation itself, (it also includes its authorised representative) to file the annual return.

A clear distinction must be made between an annual return and a tax return.  An annual return is a sort of “renewal” and has the purpose to confirm whether CIPC is in possession of the most up to date information of a company or close corporation and that the company or close corporation is still conducting business.  A tax return focuses on taxable income of a company or close corporation in order to determine the tax liability of the company or close corporation to the State and is filed with SARS.

Compliance with the one does not mean that there is automatic compliance with the other.  It is two different processes administered in terms of different legislation by two different government departments.  Therefore, even if the tax return has been filed with SARS, the annual return must still be filed with CIPC.

A company or close corporation is mandated by law to file annual returns annually and therefore, CIPC cannot exempt companies and close corporations from filing/complying with such requirement.

The prescribed filing fees for annual returns are legislated, and therefore such cannot be waived by the CIPC.  The CIPC also cannot make arrangements for payment of annual returns in “installments” since the prescribed fee must accompany the filing.  If the prescribed fee does not accompany the filing, the filing is invalidated and must be refiled.

Yes. The Close Companies Act, 2008 (and its predecessor Companies Act, 1973) and Corporations Act, 1984 does not make a distinction between an active and inactive company or close corporation.  Therefore, even if the company or close corporation was inactive, it is still legally required to file and pay annual returns.