Services
Tax submissions & reconciliations
What businesses should submit
INTRO
How confident are you in your tax compliance status?
Managing tax submissions and reconciliations throughout the year ensures compliance, avoids penalties, and keeps your financials accurate. A proactive approach means no last-minute stress—just smooth processes, clean records, and better cash flow planning.
Here’s a simple breakdown of what businesses need to file and when:
1. Income Tax (ITR14)
Once a year, all registered companies must submit an income tax return (ITR14) to SARS. This report details the company’s income, expenses and taxable profit. It helps SARS determine how much tax the business owes for the financial year.
2. Provisional Tax (IRP6)
Instead of paying income tax in one big amount at the end of the year, businesses must make two advance payments in August and February. There’s also an optional third payment in September if needed. This helps spread out tax payments and avoid a large bill later.
3. PAYE (Pay-As-You-Earn)
If a business has employees, it must deduct tax from their salaries and pay it to SARS every month using the EMP201 form. This form also includes UIF (Unemployment Insurance Fund) and SDL (Skills Development Levy) contributions. Twice a year (February and August), businesses must submit an EMP501 reconciliation. This checks that all monthly PAYE, UIF, and SDL payments match what was reported. Employees’ tax certificates (IRP5s) are also submitted during this process.
4. VAT (Value-Added Tax)
If a business earns more than R1 million per year, it must register for VAT and submit VAT201 returns every two months (or monthly, depending on turnover). This return shows the VAT collected from customers and the VAT paid on expenses, with the difference paid to or refunded by SARS.
5. Dividends Tax
If a company pays dividends to shareholders, it must deduct 20% tax and submit it to SARS along with a return. This is due at the end of the month following the dividend payment.
6. Capital Gains Tax (CGT)
If a business sells property, shares, or other valuable assets for a profit, it must include Capital Gains Tax in its annual income tax return (ITR14). This tax is based on the profit made from the sale.
How we can help
We can assist your company with all these tax returns and queries and also resolve disputes, mitigate late penalties and ensure your company remains in good standing.
It is important to be compliant on all SARS-related returns. Businesses are often required to provide, confirm or share tax clearance information to another entity. This is because proof of tax compliance is an indicator of a company’s good standing in terms of its legal obligations and how well it is managed.