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People who pay income tax are generally individuals who earn an income e.g. from a salary, commission, fees, etc.

Corporate tax includes tax paid by companies or close corporations, on their annual income. Deceased estates and insolvent estates also pay tax on the income that they earn. Most of the State’s income is derived from Income Tax (personal and corporate tax), although nearly a third of total revenue from national government taxes comes from indirect taxes, primarily Value-Added Tax (VAT). (Per SARS Website)

You do not need to submit a return if ALL the criteria below apply to you:
* Your total employment income / salary for the year before tax (gross income) was not more than R500 000; and
* You are younger than 65 years; and
* You only received employment income / salary for the full year of assessment from one employer; and
* Your employer deducted PAYE from your monthly salary; and
* You have no car allowance/company car/ travel allowance or other income (e.g. interest or rental income); and
* You are not claiming tax related deductions/rebates (e.g. medical expenses, retirement annuity contributions other than pension contributions made by your employer, travel).

Only after you have registered as a taxpayer, you can register on eFiling.

Unsure whether you are registered or not? You can ask your employer, call the SARS Contact Centre on 0800 00 7277 or visit your nearest SARS branch to find out. Top Tip: SARS won't provide your tax number to another person, unless the person is your tax practitioner or has Power of Attorney (POA) to conduct your tax affairs.

Taxpayers need to submit a tax return to SARS so they can calculate your tax liability based on the income you declare and the tax-deductible expenses you have incurred for a year of assessment. In some cases, it may result in a refund.
The annual Tax Season is when you will be required to submit a return. For most individual taxpayers this runs from July to November every year and for the entities within 6 months from its financial year end.

For more information on who needs to send a return, the channels through which you can send your return, the relevant material (supporting documentation) that you will need to keep handy and more, the information can be confirmed on SARS’s website: www.sars.gov.za.

Tax Season:
Apart from sending your return through the usual channels and the SARS eFiling website via your PC, you can now also download their Smartphone App on your tablet or smartphone.

Normally payment will occur within a month from assessment for Income Tax Assessments and immediately for Provisional Tax returns in August and February of a tax year. These dates will also be updated annually on SARS’s website.

Do you have outstanding taxes? Do you need help deciding what to do or whom to call? Please contact iFama to provide you with advice in this regard.

Taxpayers, both individuals and businesses, are required to be fully tax compliant through on time submission of returns and payments, to avoid penalties and interest being charged.

If you owe money to SARS and need to make payments arrangements. You can contact SARS to help you in this regard or contact iFama to advise you.

Important - If the submission date falls on a weekend or public holiday, you need to submit the return/declaration together with your payment, if applicable, by the last business day before the weekend or public holiday.

In instances where taxpayers are not compliant and have outstanding tax debt, the SARS Debt Management department is committed to assisting businesses and individuals to become fully compliant.

If you want to make a payment to SARS, there are several options e.g. at a bank, via eFiling and via EFT.

If you have submitted a return and realise an error on the figures, you can request a correction thereof via eFiling.

Should you not agree with an assessment, you would normally have the following options available:
1) Request a reason for the assessment; and
2) Submit an objection within the specified time frame to the assessment with the supporting documentation as proof of your application; or
3) Dispute the outcome of an assessment and again providing supporting documentation for the reason for the application.
4) Finaly, if you still don’t agree with the outcome of the objection, you can appeal within 30 business days from when the objection was disallowed / partially allowed.

Should you not agree with a penalty or interest raised, you have the option to request a remission thereof clearing stating your reasons.

iFama can assist with all the above processes.

In this section SARS provided you with some key life stages and how tax matters need to be considered. (These links refer to SARS's website.)

Tax and starting work. No one teaches you about tax so here are a few helpful tips as to what elements you need to consider.

Tax and changing jobs. Many of us change jobs in our career but until you’ve done it once you don’t know what to expect. So here are a few handy guidelines.

Tax and marriage. Now there are two of you to consider. How does that effect your tax situation? And if you’re getting married soon, congratulations.

Tax and emigration. Here are a few helpful hints for you if sadly you are leaving our beautiful country.

Tax and immigration. Welcome to South Africa. Here are a few of the things we’d like you to know about our tax system. Yes you will in most cases have to pay tax just like your fellow citizens here. Shame! (As they say here in South Africa.)

Tax and divorce. There are issues to consider here from a tax perspective so we have given you a few guidelines.

Tax and retirement. When we retire we have lots of plans and things to do. You will however need to consider your tax situation as well.

Tax, bereavement and estates. When you suffer a loss you don’t know where to turn and there is so much to sort out at a time when you least feel like doing anything. So here are a few simple notes to help you.

Tax and Inheritance. When someone dies they normally have a ‘will’. The people who benefit from this ‘will’ are known as the heirs. The heirs receive an ‘inheritance’.

Tax and disability. Here you can learn what criteria are applied to disability and what tax benefits are available.

Tax and travellers. The all-important information on what you can and cannot bring into South Africa when travelling.

Tax and trusts. Here we look at the tax implications for Trusts.

Tax and non-residents. There are tax considerations here to bear in mind if you are not resident here in South Africa.

Tax and Embassy Employees. And here a special section for the Embassy staff here in South Africa.

This basic Tax Calendar has been developed to provide a guide to taxpayers about the key deadlines for the main segments of taxpayers. (As it appears on the SARS website)

Individuals:
Tax Season – Tax Season for individuals normally runs from July to November (for non-provisional taxpayers), with provisional taxpayers having until end January to file via eFiling. Provisional Tax - The filing and payment by individuals of provisional tax (IRP6’s) is 31 August (1st period), 28 February (2nd period) and 30 September (3rd period voluntary)

Employers (PAYE):
All businesses that are required to register for PAYE, must follow the schedule below: Monthly – the EMP201 must be submitted monthly – by the 7th of the following month or the last business day before the 7th if it falls on a weekend or public holiday. Interim (for period 1 March to 31 August) – the Interim Employers Tax Season for EMP501 reconciliations runs from 1 September to 31 October Annual (for period 1 March to 28 February) – the annual Employers Tax Season runs from 1 April to 31 May.

Companies:
Tax Season - Companies, including CC’s, Co‐operatives and Body Corporates, are required to submit a Return of Income: Companies and Close Corporations (ITR14) within 12 months from the date on which their financial year ends. Provisional Tax - The filing and payment by companies of provisional tax (IRP6’s) is 6 (six) months after year end (1st period), at financial year end (2nd period) and 6 (six) months after financial year end (3rd period voluntary)

Vendors:
VAT Manual – submission of the VAT201 and payment must be done by the 25th of the month. It should be noted that each vendor may be on a different VAT cycle. Electronic (eFiling) – submission and payment of the VAT201 must be done and paid by the last business day of the month before 16:00.

Small business:
Small businesses which fall into one of the categories above (CC, Co-operatives) must follow the schedule outlined above. Turnover tax Small businesses which are registered for Turnover Tax must follow the schedule below: Turnover tax will be levied annually on a year of assessment that runs from the beginning of March of the one year to the end of February of the following year. It will include two six-monthly interim (provisional) payments.

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 be taken?

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.

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. Normally these details will be updated on eFiling using the RAV01.

Submit Annual Tax Return:
Every registered taxpayer is required to submit a return of income twelve months after the end of the financial year, of such taxpayer, in the prescribed form. Returns can be submitted electronically via e-filing or manually at a SARS branch where the taxpayer is registered.

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 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.

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. These codes could be obtained from www.sars.gov.za

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 27% from 1 March 2023, previously 28%.