We often hear from our clients that they get very confused with all the legislative requirements behind having a Company. They get lost in the different acronyms and different governance institutions. It is not that hard to get into a cadence of doing all your submissions yourself (if you wish) and keep your company compliant. At least know the different aspects of compliance requirements so that if you do decide to outsource it, you can still make sure that it is happening correctly and timeously.
We have put together a list of all the onerous ones. Save them into your calendars, create reminders, and empower yourself!
Also, feel free to get in touch with us if you would like to learn more or require any assistance. Email us at info@thrive.africa.com
Who are these institutions and where do they come in?
1.SARS (South African Revenue Services)
SARS is the revenue services of the South African government and regulatory body when it comes to taxes and customs. They are also our nation’s tax collection authority.
Some of the taxes and compliance requirements include: VAT, PAYE, SDL, Provisional Income Tax, Final Income tax, Personal income tax- all registrations, submissions/declarations and payments are done via SARS e-filing website. See more details in the below table.
2.CIPC (Companies and intellectual Property Commission)
Registration of new companies start with CIPC. Once registered, a tax number is automatically generated through CIPC and linked to SARS business profile. CIPC ensures that you comply with requirements with regards to the Companies Act and by submitting your annual return, you confirm that your company is still in business and keeps your Company registered and compliant for the following year.
3.Department of Labour
Once you have registered for PAYE and UIF with SARS, you are required to request a UIF reference number for the Company. The UIF reference number as provided by the department of labor is different from the UIF number provided by SARS. Payments for UIF are done via the SARS website whereas declarations of your employees are done to the Department of Labour via U-Filing.
Summary of typical company requirements.
South Africa Revenue Services (SARS)
Company Provisional Income Tax (IRP6)
Purpose:
This is to allow companies to pay a portion of their annual tax ahead of time so that the annual liability is not too hefty
Deadline:
How often?
There are 2 provisional returns:
By When?
1st one: the return and payment is due within 6 months after your financial year-end
2nd one: the return and payment is due within 12 months after your financial year-end
By when?
Example: for a 28 February Company year-end:
1st provisional tax: before 31 August
2nd provisional tax: before 28 February
Annual Income Tax Return (ITR 14)
Purpose:
To declare the Company net profit/loss for the year, calculate the annual income tax liability (if any) and reconcile with the provisional payments made previously
Deadline:
How often?
Once a Year
By When?
By 12 months after year end.
Pay As You Earn (PAYE), UIF* and SDL- Monthly EMP201
Purpose:
To declare and pay PAYE retained from your employee’s salary
Deadline:
How often?
Monthly submission of EMP201
By When?
EMP201 declaration by the end of the month
Payment by the 7th of the following month
Employer Reconciliation- EMP501
Purpose:
To reconcile the monthly PAYE, UIF and SDL declaration and payment to your employee’s tax certificates
Deadline:
How often?
Twice a Year
By When?
1st deadline: 31 May (annual declaration)
2nd deadline: 31 October (interim covering 6 months March-August)
Value Added Tax (VAT)
Purpose:
This is only applicable for Companies who are registered for VAT
Deadline:
How often?
Either monthly or every 2 months. Most Pty Ltd are on a 2 monthly cycle
By When?
Declarations due by the 25th of the month (covering VAT for the previous 2 months)
Payment to SARS due by the last day of the month.
Companies and Intellectual Property Commission
Annual Return (AR) Submission
Purpose:
AR is filed to ensure that CIPC is in possession of the latest information of the company or CC. They also determine whether the company or CC is conducting business activities. If AR is not filed CIPC may automatically de-register the company or CC.
Deadline:
How often?
Once a year
What does it cost?
Annual turnover: Less than R1million – R100 (R50 penalty if filed more than 30 days after anniversary date)
Annual turnover: R1million but less than R10million – R450 (R150 penalty if filed more than 30 days after anniversary date)
By when?
Within 30 business days after the anniversary days of incorporation. For example, if your date of incorporation was on 10 October, then your Annual Return to CIPC is due by 10 November of the following year.
Monthly employer declaration (UI-19)
Annual Return (AR) Submission
Purpose:
Only applicable if you have a paid employee on your payroll. UI-19 declarations can be done via U-Filing or through one of the many payroll software
Deadline:
How often?
Monthly
By when?
Within 30 business days after anniversary days of incorporation. Example if your date of incorporation was on 10 October, then your Annual Return to CIPC is due by 10 November of the following year.
*Note that although UIF is paid for via the e-filing SARS portal, a separate declaration is required to be made via the U-Filing portal to the department of Labour. This is called a UI-19.
