SARS has recently changed the way in which newly registered companies are registered on eFiling. Once you have done a company registration, CIPC automatically notifies SARS, who then issues the company with an income tax number.
Appointing a public officer after a company registration
Before a company can be registered on eFiling, one of the directors has to be appointed as the public officer at SARS. This means that they will verify the contact details, and link the business tax profile to the personal tax profile of the public officer.
After this process is done, the company can register on eFiling using a one time pin(OTP) which is sent to the public officer. Returns can then be submitted and a tax clearance obtained.
As from 1 March 2021, it is mandatory for all individuals who employ domestic workers to register for COIDA. COIDA, or otherwise known as workmen’s compensation, refers to cover in case an employee is injured whilst on duty. Click on the link below to download a copy of the Government Gazette where this is announced.
Firstly, all employers of domestic workers need to register with the department of labour. After a registration number is received, a return must be submitted. On the return, the annual salary of the domestic worker needs to be declared, and a premium will be calculated according to the information provided. The premium then needs to be paid by the employer.
Contact us for more information and to assist with the registration process and submission of returns.
Employers have to submit their annual PAYE recons, also known as the EMP501 before 31 May 2021. This applies to all employers who
This is applicable to all employers who are registered for PAYE and deduct employee tax from their employees on a monthly basis. After the recon is submitted, IRP5 certificates will be generated for all employees. These certificates have to be handed over to the employees in order for them to submit their annual income tax return to SARS.
Failure to submit the PAYE recon will result in a penalty of 1% of the annual PAYE liability of the company.
A lot of people are currently starting companies at the moment due to job losses and seeking alternative income. Unfortunately, these business owners are never advised on what steps to take next i.t.o staying compliant at SARS and other state institutions. Below is a bit of a break down of what needs to be done and which returns need to be submitted.
The first thing you should do is open a bank account for the business. Without one, you will not be able to register for any tax types, or register on the central supplier database.
The company will be liable for tax from the day it is registered. After the end of each financial year, a set of financial statements will have to be compiled. These information on these financial statements will be used to submit the tax return of the company.
During the year, all companies have to submit 2 provisional tax returns based on the figures of the current financial year. The first one is 6 months into the year and the second 12 months. So for company with a February year end, it will be August and February.
As soon as one of your employees earn more than R6 918(for the 2021 financial year), you will have to register at SARS for employee tax. Or PAYE as it is known. You will have to deduct PAYE on a monthly basis from the employee and pay it over to SARS before the 7th of the following month. This also means that you will have to provide all employees who tax are deducted from with an IRP5 certificate on an annual basis.
Once a company has a turnover of more than R1 million for a 12month period, they have to register for VAT. There is also an option for companies to voluntarily register if their turnover is less. The VAT is then calculated every second month and paid over to SARS. A lot of customers and suppliers prefer to do business with companies who are VAT registered. You will also need to be VAT registered in order to apply for tenders or contracts.
CIPC – Annual returns
All ompanies have to submit an annual return to CIPC every year. Click here for more information.
Everyone always talks about annual returns from CIPC, but not many business owners know what it entails.
Who needs to submit?
All private companies, close corporations, personal liability companies and non profit companies. The annual return has to be submitted in the anniversary month of the company. If the company was registered in May, the annual return will also be due in may.
The main details required by CIPC are the annual turnover of the company. The details must also be completed for the person/s responsible for keeping the financial records of the company.
SARS has intensified their collection process, and is currently busy raising admin penalties for any outstanding returns. These admin penalties are up to R250 per month for every returns that has not been submitted. This can lead to a substantial amount that has to be paid to SARS.
Business owners must also remember that they have to continue submitting returns as long as the company is registered, even if it is not trading.