Accounting,  PAYE,  Tax,  VAT

Dormant Company

Definition of Dormant company

A company is deemed to be dormant if there hasn’t been any transactions in the name of the company for a certain period of time. This is also the case when a company seizes to trade, but does not get deregistered.

Tax obligation

Any company needs to submit tax returns, whether the company has been trading or not. This applies to all kind of taxes, income tax, employee tax and VAT.

Submitting returns

If there has not been any transactions during the year of assessment, NIL returns can be submitted for all tax types. No penalties will be imposed for late submissions. SARS will however impose penalties for failure to submit returns.

Deregistering tax types

If a company seizes to trade permanently, the company must be deregistered for all tax types at SARS. Before this can be done, all outstanding tax returns must be submitted. After this, an application can be made to have the tax numbers deregistered

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