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Easy Guide to Company Tax Returns with SARS

Bo on 2 November 2023
Easy Guide to Company Tax Returns with SARS

Handling company tax returns with SARS can be tricky. In this guide, we answer your questions, show you how to avoid fines, and make sure you're doing things right

Do I need to file tax returns if my company was inactive or not making any money?

Yes, you still need to file your company's tax returns, even if it wasn't active or didn't make any money.

What happens if I don’t file tax returns?

If you don't file tax returns, two things can happen:

  • SARS marks your company as non-compliant.
  • SARS gives you fines.

Not being compliant can be a problem if you want to apply for projects that ask for a tax clearance certificate. The fines from SARS start at R250 per month and can add up.

How often do I need to file tax returns?

All companies need to file three tax returns every year:

  1. First provisional tax return: 6 months into your company's financial year end.
  2. Second provisional tax return: On your company's financial year end.
  3. Income Tax Return: Within 12 months after your company's financial year end.

For example, if your company's financial year ends in February, the due dates would be:

  1. First provisional tax return: 31 August
  2. Second provisional tax return: 28 February
  3. Income Tax Return: 28 February of the next year

How do I check if I have tax returns outstanding?

Check your tax status online using SARS eFiling. Make sure your company is added to your eFiling account and the income tax type is activated. If not, add it or ask someone who has access to check. To check the tax status, go to the "Tax Status" section and follow the steps.

Tip: If you use Govchain, you can see your tax status on your dashboard or ask one of our consultants to help you out.

How do I add my company to SARS eFiling?

Watch this video to see how to add your company to eFiling:

Remember, you need an eFiling profile, and your company must have a SARS registered rep (see below 👇).

What is a SARS registered representative and do I need one?

A SARS registered representative is the official contact for a company with SARS, usually a company director. All companies must add a SARS representative within 30 days of starting. Without one, you can't use SARS eFiling.

To add a SARS registered representative, follow these steps: Link to Steps

Tip: We can help you with this process as part of our services.

Do I need to deregister my company if I am not using it?

Yes, if you're not using your company and it won't be trading, officially close it down. If you don't, you might get fines from SARS for not sending in tax returns. It's best to just close your company the right way to avoid problems later on.

To deregister a company, follow these steps: Link to Steps

How can Govchain help take the stress out of SARS tax returns?

We make running your business and keeping up with compliance easy. Our system tells you when it's time to file tax returns, and you can easily do this online with us.

If you have questions, our friendly support team is here to help you.