Company Tax Returns in South Africa: What Every Business Owner Needs to Know
Running a business in South Africa means more than managing your team, sales, and operations — you’re also responsible for your company’s tax compliance. Filing Company Tax Returns in South Africa is a critical legal obligation. Failure to comply can lead to penalties, audits, and reputational damage.
In this guide, we’ll walk you through everything you need to know about filing your ITR14 return, SARS requirements, key deadlines, and how to avoid costly mistakes.
✅ What Is a Company Tax Return?
A company tax return, officially known as the ITR14, is a formal declaration of your company’s income, expenses, and tax liability for a specific financial year. All companies operating in South Africa must submit this return to SARS (South African Revenue Service), regardless of profit or turnover.
The ITR14 applies to:
- Private companies (Pty) Ltd
- Public companies (Ltd)
- Close corporations (CCs)
- State-owned entities
- Non-profit organisations (NPOs), under qualifying criteria
Company Tax Returns in South Africa are the foundation of tax compliance — and getting them wrong can raise red flags at SARS.
✅ Who Needs to File Company Tax Returns in South Africa?
If your company is registered with CIPC and SARS has issued an Income Tax Reference Number, you are legally required to submit an ITR14 every year.
Even if your business made no income or was dormant, a submission is still required.
💡 Note: Submitting a “nil return” does not exempt you from compliance checks. Dormant companies must still file.
🗓️ What Is the Deadline for Filing the ITR14?
You must submit your company tax return within 12 months of your financial year-end.
Most companies follow this structure:
- Year-end: 28 February 2024
- ITR14 Deadline: 28 February 2025
Missing this deadline may trigger penalties and affect your tax compliance status.
🧾 Step-by-Step: How to File Your ITR14
Filing Company Tax Returns in South Africa can be straightforward if your financials are in order. Here’s how to file:
- Log into your SARS eFiling profile (registered to the company)
- Navigate to Returns Issued → Income Tax
- Select the relevant ITR14 form
- Complete the necessary sections:
- Company Information
- Income Statement
- Tax Computation
- Supporting Documentation
- Upload:
- Signed Annual Financial Statements (PDF)
- Tax computation schedules (if applicable)
- Submit and save the SARS confirmation receipt
🛠️ Pro Tip: SARS recently updated the ITR14 to include more granular detail. A solid bookkeeping system is no longer optional — it’s essential.
💼 What Is the Company Tax Rate in South Africa?
As of the 2023/2024 tax year, the corporate tax rate is:
- 27% for all companies with years of assessment ending on or after 31 March 2023
- Lower rates may apply for qualifying Small Business Corporations (SBCs), depending on turnover and shareholder criteria
⚠️ What Happens If You Don’t File Your ITR14?
Failing to submit Company Tax Returns in South Africa can lead to serious consequences, including:
- R250+ monthly penalties for late submission
- Legal action from SARS
- Ineligibility for a Tax Clearance Certificate
- Negative compliance status, which affects:
- Tenders and government contracts
- Business funding
- Foreign exchange transactions
📊 What Financial Documents Do You Need?
Before filing, make sure you have the following:
- Trial balance and general ledger
- Profit and loss statement
- Balance sheet (assets, liabilities, equity)
- Depreciation and capital gains schedules
- Director or shareholder loan accounts
- Supporting documentation for SARS queries
- Tax computation comparing taxable income vs accounting profit
Having these ready ensures a smooth filing process and helps avoid SARS audits.
🧨 Common SARS Red Flags to Avoid
SARS is increasingly using data analytics to detect inconsistencies in Company Tax Returns in South Africa. You may be flagged if:
- You submit a nil return but show payroll or bank activity
- Director’s loans are not disclosed correctly
- Your expense claims don’t align with declared revenue
- You claim significant assessed losses with no clear business operations
👩💼 Why Work With a Tax Practitioner?
Filing Company Tax Returns in South Africa is more complex than individual returns. That’s why many companies choose to work with registered tax practitioners.
Here’s how a professional can help:
- Prepare fully compliant financial statements
- Perform accurate tax computations
- Align your tax submissions with accounting records
- Advise on legal tax-saving strategies, like:
- Section 12H learnership allowances
- Utilisation of assessed losses
- VAT planning and timing strategies
✅ Sparrows Chartered Accountants – Your Corporate Tax Partner
At Sparrows Chartered Accountants, we offer end-to-end support for Company Tax Returns in South Africa. Our services include:
- Accurate ITR14 preparation and submission
- Financial statement review and drafting
- SARS dispute resolution and audit response
- Strategic tax planning for growth-focused businesses
Whether you’re a startup or a multi-entity group, our Chartered Accountants (CA(SA)) ensure you stay compliant — and competitive.
Ready to file your company tax return with confidence?
Contact Sparrows Chartered Accountants today and let us handle your ITR14 with precision and professionalism.
Disclaimer: This article is intended for general informational purposes only and reflects the legislation and SARS practices in effect at the time of publishing. Tax laws are subject to change, and individual circumstances vary. Always consult a registered tax practitioner or financial advisor for advice tailored to your situation.
