• Tax

    Company Tax returns for dormant companies

    There is a common belief among business owners, that when a company is dormant, i.e did not trade for a specific financial year, that you do not need to submit a tax return. This is not true, a company has to submit a tax return whether it has traded or not. SARS will still hold a dormant company liable for a return, even if the company is dormant. And this can lead to penalties being raised, usually at R250 per month for every return not submitted. The following is an extraxt is from SAIT(South African Institute for Tax professionals) 1. Believing you do not need to submit an ITR14 for…

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  • 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…

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