Corporate Income Tax

What’s New?

10 July 2023 – Corporate Income Tax technical issues
SARS is aware of the technical error experienced by some Corporate Income Tax (CIT) taxpayers while requesting a ITR14 return on eFiling.
We are in the process of correcting the error and envisage such to be corrected by 14 July 2023. We encourage taxpayers experiencing this error to wait for it to be corrected before requesting and submitting their returns. Should you require any assistance with this please contact the SARS Contact Centre on local: 0800 00 7277, International callers: +27 11 602 2093. We apologise for any inconvenience caused
22 June 2023 – CIT changes from 23 June 2023
The form and system changes will be introduced from 23 June 2023 to the Income Tax Return for Companies (ITR14) and Notice of Assessment for Companies (ITA34C). A limited number of source code descriptions will also be updated. The form is the 2022 ITR14 form, see the prototype here.
The following are the highlights of a non-exhaustive list of Legal Changes impacting the Income Tax Return for Companies (ITR14), Notice of Assessment for Companies (ITA34C), core systems and source codes:
- An update to the core systems to accommodate the assessed loss calculations in terms of section 20.
- An update to the ITR14 to identify paragraph 13(1)(a) and 13(1)(b) deductions for purposes of extending the prescription period on disputes.
- Removal of the Solidarity Fund Donations (excl. any other Donations) container on the ITR14 to align with the new Section 18A requirements.
- The Public Benefit Organisations (PBO) number(s) declared on the return when claiming donations will be validated against the SARS’s PBO register for validity.
- A Share Register will be added to the ITR14 return which will enable the capturing of the classes of shares, and the details of the holders of shares per class of share.
- The “Taxable Distribution(s) from all Trusts(s)” container will be enhanced to enable the taxpayer to declare the details of each distribution received from a Trust.
- An update to source code descriptions where applicable.
SARS gratefully acknowledges compliant taxpayers for filing their tax returns and paying their taxes on time. The support from tax practitioners is appreciated and we would like to remind you of the critical role that practitioners play in bridging the gap between taxpayers and SARS. As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies and tax practitioners to keep abreast of such changes in so that companies continue to meet their tax obligations. See the updated Guide on how to complete the Income Tax Return (ITR14) for Companies.
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.

Note: For CIPC registered companies you are not required to perform a separate SARS tax registration for Income Tax, as your company will automatically be registered via a direct interface with CIPC.

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?

Provisional Tax

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.

Tax on Assessment

Payment of tax upon an assessment notice issued by SARS must be done within the period specified in such notice.

For the years of assessment ending on 31 March 2023 and later the rate of Corporate Income Tax payable is 27% (previously 28%).

How should CIT be paid?

Payments can be made using the following options:

Online Banking
Electronic funds transfer
Bank payments
eFiling
Swift payment method (applicable only to foreign payments).

Note: Please refer to the guide on SARS Payment Rules for more information on the above methods of payment.

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FAQ: What information should be completed if the number of beneficial owners is excessive, for example, listed company shareholders; trusts with more than 50 beneficiaries etc.

The ITR14 currently only requires disclosure of the holders of...

FAQ: Where there are nominee shareholders holding shares on behalf of another shareholder, which shareholder’s information is meant to be disclosed? Should the ITR14 “share register” align to the company’s share register required in terms of the Companies Act, which will have the nominee shareholder and not the ultimate shareholder?

The ITR14 requires disclosure of the holder of the beneficial...

FAQ: Should the declaration of the shareholding be at the date of submission of the return, or the shareholding at the end of the year of assessment for which the return is submitted?

The details of the holders of the beneficial interest in...

FAQ: What happens for listed entities where the shareholding is vast and constantly changing, what is the extent of information required here?

The details of all the holders of a beneficial interest...

FAQ: There are concerns about personal information and the fact that each shareholder’s income tax number, cell number and email address is required to be disclosed to which a shareholder might object. Has SARS considered any POPI Act implications in this regard?

Yes, SARS has considered the issues raised, and will not...

A co-operative does not have shares like a normal company but rather membership fees with members instead of shareholders. How does a co-operative complete the share register?

The general rule applicable to all companies (which includes co-operatives)...

FAQ: How should a Collective Investment Scheme (CIS) portfolio registered as a company at SARS complete the Share Register?

Completion of the share register is mandatory for all companies,...

Last Updated:

10/11/2023
11:55