What’s New?
- 1 September 2022 – Removal of the supplementary declaration for companies or close corporations (IT14SD) form 16 September 2022
From 16 September 2022 SARS will no longer require you to submit the Supplementary Declaration for Companies or Close Corporations (IT14SD) when identified for a verification.
The requirement to submit an IT14SD when a verification case is created will be replaced by a letter requesting specific relevant documents based on the reason for verification. For more information click here.
What is Corporate Income Tax?
Corporate Income Tax (CIT) is a tax imposed on companies resident in the Republic of South Africa i.e. incorporated under the laws of, or which are effectively managed in, the Republic, and which derive income from within or outside the Republic. Non-resident companies which operate through a branch or which have a permanent establishment within the Republic are subject to tax on all income from a source within the Republic. Read further if you want to know how to register a new company for income tax.
Who is it for?
CIT is applicable (but not limited) to the following companies which are liable under the Income Tax Act, 1962 for the payment of tax on all income received by or accrued to them within a financial year:
- Public companies (“Ltd”)
- Private companies (”Pty (Ltd)”)
- State owned companies (“SOC”)
- Personal Liability Company (“Inc”)
- Non profit company
- Close Corporations (“CC”)
- Co-operatives
- Collective Investment Schemes
- Small Business Corporation (s12E)
- Body Corporates
- Share Block Companies
- Dormant Companies
- Public Benefit Companies.
What steps must I take?
Register as taxpayer
Every business liable to taxation, under the Income Tax Act, 1962, is required to register with SARS as a taxpayer. You can register once for all different tax types using the client information system.
Top Tip: You must make sure your business details are up to date before you submit your ITR14. So visit our keeping my business details up to date webpage to find out how to do this.
Submit annual tax return
For the year of assessment, the filing requirements are as follows:
- Every company or other juristic person, which is a resident that:-
- derived 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,
Returns can be submitted electronically via e-filing.
Submit provisional tax returns
In addition to annual returns, every company (excluding Body Corporates, Share Block Companies and Public Benefit Companies) is required to submit provisional tax returns (IRP6). The first of these returns is required to be submitted six months from the start of the year, and the second at year end, and must both contain an estimate of the total taxable income earned or to be earned for the full year. Payment of the tax must accompany the return. A third “top-up” payment may be made six months after year-end.
Top Tip: When submitting your return you will need to give the SIC code for your business. To find out your relevant code please click here.
When should CIT be paid?
- First payment – within six months after the start of the year of assessment
- Second payment – on or before the last day of the year of assessment
- Third payment – six months after the end of the year of assessment (for taxpayers with a February year-end it is seven months after the end of the year, i.e. 30 September annually.
How should CIT be paid?
- Online Banking
- Electronic funds transfer
- Bank payments
- eFiling
- Swift payment method (applicable only to foreign payments).
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