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Corporate Income Tax

What’s New?

  • 16 July 2021 – Companies can file their ITR14 tax returns

    The eFiling pop up message for the filing of the Income Tax Return for companies (ITR14) for the 2021 year of assessment that intend to deregister with CIPC ONLY has been removed. SARS apologises for any inconvenience caused. A company must submit its ITR14 tax return within 12 months of its financial year-end. For more information, see the Guide on How to complete the Income Tax Return ITR14 for Companies.

  • 13 April 2021 – CIT Audit letters

    Corporate Income Tax (CIT) Audit Letters will now indicate actual dates for submission of relevant material. Failure to adhere to the stipulated deadlines may result in refunds being withheld or assessments being raised, see more here.

  • 7 December 2020 – CIT changes implemented

    The Guide was updated with the legislative changes i.e. How to complete the Income Tax Return (ITR14) for Companies.

  • 30 November 2020 – Corporate Income Tax (CIT) Filing season important changes for 2020/21

    SARS is in the process of updating the systems, forms and processes pertaining to the filing of Income Tax returns for companies. These changes will be implemented in a phased approach throughout the 2020 /21 period, read more.

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.

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:

  • Listed public companies
  • Unlisted public companies
  • Private Companies
  • Close Corporations
  • 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 2018 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, 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 is required to submit provisional tax returns. 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 contain an estimate of the total taxable income earned or to be earned for that period. 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 from the beginning of the year of assessment
  • Second payment – on or before the last day of the year of assessment
  • Third payment – seven months after the year of assessment for taxpayers with February year-end and six months after year of assessment for all other cases.
Tax on Assessment
Payment of tax upon an assessment notice issued by SARS must be done within the period specified in such notice.
 
Corporate Income Tax is payable at a rate of 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.
To access this page in different languages click on the links below:
Related Documents

FTW01 – Declaration of Foreign Tax Withheld – External (Form)

GEN-001 – Mining Schedule – External Form

GEN-ACM-12-F04 – Richemont Claim Form for year 2019 onward – External Form

ICS01 – Schedule for Insurance Companies – External Form

IT-ELEC-03-G01 – How to complete the company Income Tax return ITR14 eFiling – External Guide

IT-GEN-03-G01 – How to complete the IT14SD Supplementary Declaration Form – External Guide

IT-GEN-04-G01 – How to complete the Income Tax Return ITR14 for Companies – External Guide

IT10A – Controlled Foreign Company Prior 2012 – External Form

IT10B – Schedule Controlled Foreign Company 2012 Onward – External Form

IT14SD – Example of Supplementary Declaration for Company or CC – External Form

IT77C – Application for registration Company – External form

ITR14 Corporate Income Tax return example

LAPD-CGT-G07 – Briefing Note on Standard Time Apportionment Calculator

LAPD-ETI-G01 – Guide to the Employment Tax Incentive

LAPD-Gen-G01 – Taxation in South Africa

LAPD-Gen-G02 – Guide for Tax Rates Duties Levies

LAPD-Gen-G05 – Guide to Disposal of a Residence from a Company or Trust

LAPD-Gen-G08 – Guide on the Taxation of Professional Sports Clubs and Players

LAPD-IT-G06 – Guide to the Taxation of Film Owners

LAPD-IT-G12 – Guide to the Urban Development Zone Allowance

LAPD-IT-G16 – Basic Guide to Income Tax for Public Benefit Organisations

LAPD-IT-G17 – Basic Guide to Section 18A Approval

LAPD-IT-G18 – Guide to Building Allowances

LAPD-IT-G19 – Comprehensive Guide to Dividends Tax

LAPD-IT-G20 – Guide to the Taxation of Special Trusts

LAPD-IT-G24 – Guide on Mutual Agreement Procedures

LAPD-IT-G25 – Guide to the Exemption from normal tax of income from films

LAPD-IT-G26 – Tax Exemption Guide for Public Benefit Organisations in South Africa

LAPD-IT-G27 – Tax Guide for Recreational Clubs

LAPD-STC-G01 – Comprehensive Guide to Secondary Tax on Companies

LAPD-TAdm-G13 – Reportable Arrangement Guide

RA01 – Reporting Reportable Arrangements – External Form

RCH01 – Schedule for Companies Electing to be a Headquarter Company – External Form

VCC001 – Venture Capital Company Application Form – External Form

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