INCOME TAX RETURN FOR COMPANIES (ITR14)
12 December 2016 - Further enhancements to the Income Tax Return for Companies (ITR14)
SARS introduced enhancements to the Income Tax Return for Companies (ITR14) on 9 December 2016.
Only the new return will be accepted after 9 December 2016 and where a taxpayer has captured and saved an ITR14 prior to Friday 9 December 2016, the taxpayer would need to open the return which will then be replaced with a new ITR14 return based on the rules applicable for that year of assessment. Read more.
Changes to the ITR14Legal enhancements:
- For the year of assessment (YOA) commencing on or after 1 January 2016, foreign tax credits cannot be claimed as a rebate in terms of section 6quin due to the fact that this section has been repealed. However, taxpayers can now claim this type of foreign tax credit as a deduction in terms of section 6quat (1C).
- As from 1 March 2016, all qualifying companies operating within a Special Economic Zones (SEZ) will be taxed at a rate of 15% which is lower than the current corporate tax rate of 28%.
- A question has been added on the return wizard for a company to indicate if it has changed its residency status and if it has, from what date.
- Dormant companies: The “Dormant Company Details” container now makes provision for dormant companies carrying on the activities of a nominee to declare taxable passive income received or accrued. Please note that it is a legal requirement to submit a tax return even if the company is dormant.
- The ITR14 return now has an option to indicate if the financial year end of the company changed during the relevant year of assessment.
- The containers for Local and Foreign Capital Gains and Losses now make provision for a new line item with a new source code for the “claw back” provisions in terms of section 45(5).
- A new field has been added to the “Non-Residency” container to indicate the date on which the company ceased to be a resident if applicable.
- IRP5 data will be pre-populated and locked. If you have more than twenty IRP5’s the twentieth one will not be locked, you can make changes on it.
Top Tip: To see an example of the new ITR14 form, click here.
Verification of details
Before completing the ITR14 make sure that that the contact, address, banking and public officer details of the company are correct by verifying and updating it (if required) on the Registration, Amendment and Verification Form (RAV01). You can verify and update the RAV01 details by:
- Clicking on the “Maintain SARS Registered details” menu option on your eFiling profile. SARS may request you to visit a branch to verify any changes to your banking details which may have been done via eFiling.
- Visiting a SARS branch. Please consult the Registration, Amendments and Verification(RAV01) guide to prepare the mandatory supporting documents (relevant material) required for updating of banking and public officer details at a SARS branch.
Top Tip: Submissions and Request for Corrections (RFC) can be done electronically on eFiling or at a SARS branch.
How can the ITR14 be obtained & submitted?
The ITR14 can be submitted either via eFiling
of at a SARS branch
. SARS will not post the ITR14 to taxpayers and it can't be obtained through the SARS Contact Centre. Also, posted ITR14 returns will no longer be accepted by SARS.
How do we complete the ITR14?
1) Completing your ITR14 at a SARS branch
Before visiting your SARS branch
you must ensure that you have prepared all the required information that must be declared on your ITR14. To see an example of the ITR14, click here.
The SARS branch agent will only be able to assist you to capture and customise the information on the form and won't be able to interpret the relevant material (supporting documents) or to compute the return data.Step 1
Before completing your return our agent will help you to complete the Registration, Amendment and Verification form (RAV01) where you can update all registered details. See more info on the RAV01 here.
Your ITR14 will be customised according to the questions answered on the first page of the return. Our agent will assist you to customise your return. The ITR14 will not be printed for taxpayers at a branch.
Please make sure that you have the required relevant material (supporting documents) on hand when visiting a branch. See below' What supporting material must we submit with the ITR14?'
The SARS agent will confirm if you are satisfied with the information captured on the return, and then submit it electronically on your behalf. You will be required to sign the completed return using a signature pad.
You will receive an SMS or email notification from SARS to confirm that your ITR14 has been assessed. Your notice of assessment (ITA34) will be sent to you by email or by post. You can also approach the SARS branch for a copy of the ITA34.
If you would like to make a correction to any of the information you submitted, a Request for Correction (RFC) can be requested at the branch or on eFiling.
Where you have been selected for audit relating to your ITR14, you will have the opportunity to submit a revised return. The financial statements will not need to be resubmitted.
2) Completing your ITR14 via eFiling
Taxpayers who have not yet registered for eFiling are encouraged to visit www.sarsefiling.co.za to register as this will enable them to obtain, complete and submit the ITR14 online in a secure environment 24 hours a day.
What supporting material must we submit with the ITR14?
It is compulsory for the following schedules to be submitted with the return:
Note: A company that claimed an allowance for learnership agreements may have to submit the (s.12H) - IT180 schedule on request from SARS.
- For Controlled Foreign Companies:
- IT10A - Controlled Foreign Company Prior 2012
- IT10B - Controlled Foreign Company 2012 Onward
To explain this further:
- The “IT10A - Controlled Foreign Company (CFC) prior 2012” is applicable for years of assessment commencing prior to 1 April 2012
- The “IT10B - Controlled Foreign Company (CFC) 2012 onwards” is applicable for years of assessment commencing on or after 1 April 2012
- Where the number of Controlled Foreign Companies does not exceed 10, the company must submit the IT10A or IT10B forms as relevant material with the ITR14
- Where the number of Controlled Foreign Companies exceeds 10, the company will not be required to submit the IT10A or IT10B forms together with the ITR14. The IT10A or IT10B forms must be completed and retained for a period of five years after the date of submission of the ITR14.
The Company has the option to submit the information required on the IT10A or IT10B forms in a consolidated schedule, provided that all the required data as per the fields on the IT10A or IT10B forms are incorporated in the schedule.
Please note that the original relevant material (supporting documents) and financial statements must be provided to the agent if submitting at a branch.
If you're submitting via eFiling
, these documents must be submitted via eFiling at the time of submission of the return.
On subsequent submission of the specific ITR14, the submission of the Annual Financial Statements and/or supporting schedules is optional.
More info on completing the ITR14
A customised ITR14 will be created according to the company type that you specify when completing your return. Company types will be classified in line with the following company category descriptions:
A dormant company is classified as a company that has not actively traded for the full year of assessment (i.e. if the company partially traded during the year of assessment, the company will not be regarded as a dormant company).
A Share Block Company is defined in s. 1 of the Share Blocks Control Act, 1980 (Act 59 of 1980).
A Body Corporate is defined in s. 1 of the Sectional Titles Act, 1986 (Act 95 of 1986).
A Micro Business is classified as a company with a gross income (sales / turnover plus other income) not exceeding R1 million and total assets (current and non-current) not exceeding R5million, and that is not classified as a Body Corporate / Share Block Company.
A Small Business is classified as a company with a gross income (sales / turnover plus other income) not exceeding R14 million and total assets (current and non-current) not exceeding R10 million, that is not classified as a Body Corporate / Share Block Company or Micro Business.
Note: A Small Business is not the same as a Small Business Corporation as defined in section 12E.
Medium to Large Business
If a company is not classified as a body corporate / share block company, micro business or small business, it will be classified as a medium to large business (i.e. gross income (sales / turnover plus other income) exceeding R14 million and / or total assets exceeding R10 million).
Top Tip: Before even starting to complete your ITR14 make sure your business details are up to date. If you want to make any changes then you will have to complete a RAV01 online, used to update the legal entity information. See our page on “Keeping my business details up to date” for more information.
Another Tip: Also you must have installed Adobe Flash Player (Version 11 or later). The dynamic ITR14 will be hosted in Adobe Flash Player and will allow the company to create a customised return for completion.
Need any help?
For more information on the ITR14 or IT14SD contact the SARS Contact Centre
on 0800 00 SARS (7277).