MG Accounting Consultancy

An IT14SD is a supplementary declaration in which Companies must reconcile Income Tax, Value-Added Tax (VAT), Employees’ Tax (PAYE) and Customs declarations after the initial submission of the Income Tax Return: Company Income Tax Return (ITR14/IT14).

The goods or effects may be imported into the RSA without the payment of customs duty and VAT in terms of rebate item 407.06 of Schedule No. 4 to the Customs and Excise Act, provided that you have been out of the Republic of South Africa for a period of 6 months or longer.

The following will be required for the importation of personal effects and household goods: Inventory of the goods: 
• Inventory of the goods;
• Form P1.160 - Declaration in respect of unaccompanied manifested household effects
• Form DA 304 - Item 407.06 of Schedule No. 4 to the Customs and Excise Act ; and
• SAD 500 - Customs Declaration Form

Yes. SARS has implemented an electronic Request for Reasons process via eFiling and the SARS branches for Personal Income Tax (PIT), Company Income Tax (CIT) and Value-Added Tax (VAT). This functionality will now be available for PAYE as well.

The Request for Reasons functionality allow taxpayers to request reasons for the assessment where the grounds provided in the assessment do not sufficiently enable a taxpayer to understand the basis of the assessment and to formulate an objection, where the taxpayer is aggrieved by the assessment. Once the system has identified that a valid Request for Reasons has been submitted, the period within which an objection must be lodged will automatically be extended by the period permitted by the Dispute Resolution Rules. The Request for Reasons case management workflow will further allow SARS to improve its tracking and management of request for reason requests.

No, only from income  tax . The PBO  approval is only in respect of income tax. Once approved as a PBO, other exemptions applies, such as donation tax, estate duty, skills development levy, dividend tax, security transfer tax, and etc.

The PBO, as employer, may be liable to register for payroll taxes such as Pay-As-You-Earn (PAYE) and Unemployment Insurance Fund (UIF) depending on the income threshold.

Where an employer grants a benefit to an employee as a reward for services rendered, it constitutes a taxable benefit. The nature of the taxable benefit and the cash equivalent of the value must be reflected on the Employee Income Tax Certificate [IRP5/IT3(a)]

Where an employer grants an employee an allowance, the allowance is subject to the deduction of employees’ tax.
Exemption from Value-Added Tax (VAT) must be applied for separately at a SARS branch.
Transfer Duty exemption must be applied for at a SARS branch

Yes, employers will qualify for a refund if their ETI is more than their PAYE liability but certain requirements must be met. See more information on the ETI refund process.

You can request a Statement of Account (SOA) in order to better understand where the non-compliance falls.

It should be noted that SASSA determines the criteria for paying of the grant or not. According to SASSA, to qualify for the grant, you need to be unemployed (not having any source of income) and not receive UIF or any other grants. Should this not be correct, please email SASSA on srd@sassa.gov.za if any complaints.

All companies (including external companies) and close corporations are required by law to file their annual returns with the CIPC on an annual basis, within a prescribed time period. The purpose for the filing of such annual returns is to confirm whether a company or close corporation is still in business/trading, or if it will be in business in the near future.  The annual return may be regarded as a type of annual “renewal” of the company or close corporation registration.

Therefore, if annual returns are not filed within the prescribed time period, the assumption is that the company or close corporation is inactive, and as such CIPC will start the deregistration process to remove the company or close corporation from its active records. The legal effect of the deregistration process is that the juristic personality is withdrawn and the company or close corporation ceases to exist.   

Due to security concerns relating to the disclosure of personal information CIPC has affected the following changes relating to annual returns:
• Only the first 6 digits of a director’s or member’s identity number will be displayed; and
• The annual return filing certificate will not display the identity number, personal address, or contact details of a director or member.

The CIPC will assume that the company or close corporation is inactive, and as such CIPC will start the deregistration process to remove the company or close corporation from its active records. The legal effect of the deregistration process is that the juristic personality is withdrawn and the company or close corporation ceases to exist.   

It is an annual filing and it differs for companies and close corporations.  Companies must file (regardless as to whether it was active or not) within 30 business days starting from the day after its date of registration.  Close corporations must file (again regardless as to whether it was active or not) starting from the first day of the month it was registered up until the month thereafter. It may still file after such period, but an additional penalty fee will be applicable.  

A clear distinction must be made between an annual return and a tax return.  An annual return is a summary of the most relevant information regarding the company or close corporation and is filed with CIPC while a tax return focuses on taxable income of a company or close corporation in order to determine its tax liability to the State and is filed with SARS.
Compliance with the one does not mean that there is compliance with the other.  It is two different processes, administered in terms of different legislation by two different government departments.

Companies (except external companies) are required to either file its audited financials, reviewed financials or financial supplement with its annual returns. 
All companies (except external companies) and close corporations, if it is required in terms of Companies Regulation 28 read with Companies Regulation 26 to prepare audited financial statements, must file such with CIPC at the same time of filing is annual returns via www.cipc.co.za / e-services / logon using customer code and password / transact / document upload / annual financial statements. 

Companies and close corporations that is neither required to file its audited financial statements, nor voluntarily filed its audited financial statements or reviewed financial statements, must file a financial accountability supplement (CoR30.2) after filing its annual returns by completing the online form via the CIPC websitewww.cipc.co.za/Maintain Your Business / Financial Statements and Independent Review.

A company or close corporation must use its latest approved financial statements for purposes of determining the turnover for purposes of filing annual returns.

Yes. During the deregistration process notifications are mailed to the company or close corporation’s registered postal address as per CIPC records, informing it of the intended deregistration and a request to either provide confirmation that it is still active or to file outstanding annual returns.  At the time of notification, the company or close corporation’s legal persona is not yet removed.  The notification only serves to inform the company or close corporation of the intention to deregister it, if no objection or filing of annual returns occurs. 

Yes.  If deregistration is due to annual return non compliance, deregistration process will be cancelled if all outstanding annual returns are filed while it is still in such status.

WARNING:  The outstanding annual returns must be filed before the date the company or close corporation is finally deregistered.
If a voluntary deregistration, an objection letter must be e-mailed to deregistrations@cipc.co.za.  The objection letter must clearly state the reason for objecting to the deregistration and must be signed by the person who is objecting to the deregistration.  Once signed, it must be scanned in either PDF or TIFF and e-mailed as a single e-mail with all attachments in PDF or TIFF to deregistrations@cipc.co.za.

WARNING:  The objection letter must be submitted to the CIPC before the date the company or close corporation is finally deregistered.  If the company or close corporation was finally deregistered, the company or close corporation must apply for re-instatement.  No supporting documents are required to object to the deregistration. 

Yes.  Once a company or close corporation has been finally deregistered, the company or close corporation or any third person may apply for re-instatement upon filing of a form CoR40.5 and if required, supporting documents. Upon the processing of the re-instatement application, the status will be changed to “in re-instatement process”.