SARS Tax Filings

The Accounting Team handles all your company tax calculations and returns, which includes:

  • Company income tax returns
  • PAYE returns
  • Vat returns
  • Provisional Tax returns
  • Company Income Tax Returns

What is the company tax rate in South Africa?

In South Africa, the CIT rate applicable for corporate income of both resident and non-resident companies for tax years ending between 1 April 2018 and 31 March 2019 is a flat 28%.

PAYE Returns
PAYE, which is reflected on your IRP5 payslip. PAYE means that you are paying the tax you owe to SARS on a monthly basis instead of all at once at the end of the tax year, hence PAYE means ‘Paye As You Earn’

The Accounting Team completes a monthly return, summarising the Gross renumeration of all employees as well as the PAYE deducted from Employees. PAYE is deducted on the payroll system utilising the current PAYE tables issues by SARS. This return is then submitted to SARS monthly. At the end of the Tax year, the returns are reconciled and IRP5’s are issued. 

VAT Returns
As of 1 April 2018, VAT in South Africa was increased to 15%. VAT was first introduced in South Africa in 1991 at a rate of 10% thereafter was raised in 1993 VAT to 14% and once again to 15% in 2018.

A vendor – person or company that sells. Any person or company that makes taxable supplies of more than R1 million per annum must register for VAT. Any person or company that makes taxable supplies of more than R50 000 but less than R1 million per annum may apply for voluntary registration. There are certain supplies are that are subject to a zero rate or are exempt from VAT.

In accordance to the tax period allocated to the vendor, a vendor must then submit a VAT return and make payments of the VAT liabilities (or claim a VAT refund). The VAT returns and payments are normally submitted / made on or before the 25th day after the end of the tax period. Late payments of VAT will attract a penalty and interest.

Provisional tax
As soon as you commence business you will be required to register with your local SARS office as a provisional taxpayer. After your registration it takes 30 days to become a provisional taxpayer, whereas companies are automatically registered as provisional taxpayers.

Provisional tax is intended to assist taxpayers in meeting their normal tax liabilities, with the payment of two installments in respect of income received or accrued during the relevant tax year and an additional third payment after the end of the tax year. These payments avoid the unnecessary single large normal tax payment on assessment after the end of the tax year.

Within six months after the commencement of the tax year, the first provisional tax payment must be made and the second payment not later than the last day of the tax year.

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