Xero Accounting Gold Champion Partner
We hope you enjoy reading the blog post.
If you want our team to do your accounting or tax for you click here.

The Latest Tax Changes in South Africa and Their Impact on Your Business

The Latest Tax Changes in South Africa and Their Impact on Your Business

The South African Revenue Service (SARS) has recently implemented comprehensive adjustments to the Corporate Income Tax (CIT) system, which came into effect from the 23rd of June, 2023. These modifications directly pertain to the Income Tax Return for Companies (ITR14) and the Notice of Assessment for Companies (ITA344C).

Staying Informed

SARS emphasizes that a select number of source code descriptions will also undergo updates.

“As laws, regulations, and tax statutes continuously evolve, it remains crucial for companies and tax professionals to stay informed about such alterations to ensure their continued adherence to tax responsibilities.” stated SARS.

Key Changes to Corporate Income Tax

SARS has outlined several legal amendments impacting CIT, including:

  1. Enhancement of Core Systems: The core systems will be updated to accommodate assessed loss calculations as per section 20.
  2. Updates to ITR14: The ITR14 will be updated to distinguish deductions under paragraph 13(1)(a) and 13(1)(b) for the purpose of extending prescription periods on disputes.
  3. Solidarity Fund Donations: The Solidarity Fund Donations container will be removed from ITR14, aligning with new Section 18A requirements.
  4. Validation of PBO Numbers: Public Benefit Organisations (PBO) numbers declared in returns for donation claims will be validated against SARS’s PBO register.
  5. Inclusion of Share Register: The ITR14 return will include a Share Register, allowing the recording of share classes and holder details per class.
  6. Enhanced Trust Distribution Reporting: The “Taxable Distribution(s) from all Trusts(s)” container will be enhanced, enabling taxpayers to declare individual distribution details from Trusts.
  7. Updates to Source Code Descriptions: Source code descriptions will be updated as necessary.

Obligations for All Companies

All companies operating within South Africa are obligated to fulfill Corporate Income Tax (CIT) payments. This applies to public companies, private companies, non-profit organizations, close corporations, and state-owned entities.

SARS clarified, “For assessment years ending on or after 31st March 2023, the Corporate Income Tax rate is set at 27% (previously 28%).”

Meeting Tax Obligations

Every taxable business is required to register with SARS and remit corporate income tax. Submission of the ITR14 is to be carried out electronically through SARS’s e-Filing system.

SARS advises that CIT payments should be made periodically, with the first payment within six months from the assessment year’s start, a second payment by the year of assessment’s end, and a third payment six months after the assessment year concludes.

“It’s imperative to settle tax payments within the specified timeframe outlined in the assessment notice issued by SARS.”

Conclusion

Remember that these tax changes are crucial for businesses to understand and adapt to. Stay informed and aligned with these modifications to ensure compliance with your tax obligations.

Facebook
Twitter
LinkedIn
WhatsApp
Ready to take your financial success to new heights?
How would it feel to have peace of mind knowing that your finances are in the hands of experienced professionals who are passionate about helping you maximise your financial potential?
Ready to experience the difference? Contact us today for a complimentary consultation and discover how our tailored accounting solutions can empower your financial future.
What our clients say?
Thrive CFO
5.0
Based on 10 reviews
powered by Google
Martin Mulder
Martin Mulder
12:36 17 Aug 23
I have only the greatest appreciation for this company. I was going through a difficult time and they were understanding and accommodating. My tax was handled speedily and efficiently.
Kevin Rademeyer
Kevin Rademeyer
07:20 17 Aug 23
We have been using Melissa, Marche and the rest of the crew at ThriveCFO for over 10 years, in order to compile our annual audit for Law Society. They have been exceptional, efficient and pro-active every year. I would not take the business anywhere else.
Jan de Wit
Jan de Wit
13:13 13 Jun 23
Our firm has been making use of the services of Thrive CFO for more than 10 years. Thrive CFO has amazing staff that is not only extremely helpful, but also very capable. We are extremely happy with their services and will continue to support them. They make accounting easy. Thanks Melissa, Marche and the rest of the Team - You Rock!!
LM Keyser
LM Keyser
07:13 13 Jun 23
The ThriveCFO team has been our trusted accounting and tax partner since 2010. They are competent, honest, approachable, quick to respond, and they really do care. I highly recommend them.
Andre Claassen
Andre Claassen
10:24 08 Jun 23
Prompt, professional and personal service!!
Palabadi Ramaphoko
Palabadi Ramaphoko
19:38 15 May 23
I'm impressed with the work you do. You are extremely professional and polite. I hope we will grow big together!
Deidre Oosthuysen
Deidre Oosthuysen
12:20 04 May 23
I feel as though Thrive CFO is a natural part of our business. 100% professional. Very knowledgeable. Incredibly organised. And with a work ethic and proactive communication practices, I know I am in the very best hands possible.
Sean Fabian
Sean Fabian
07:45 04 May 23
As someone who has had the pleasure of working with Thrive CFO, I can confidently say that they are an exceptional company with an unwavering dedication to their clients. From beginning to end, their commitment to providing top-tier financial services is evident in every interaction.One of the things that sets Thrive CFO apart is their focus on education. They take the time to educate their clients on financial best practices and help them understand the reasoning behind their recommendations. This approach ensures that clients are empowered to make informed decisions about their finances.Thrive CFO also uses the latest technology to streamline their services and make the financial management process as efficient as possible. They utilize cloud-based software to provide real-time financial data and make it easy for clients to access their financial information at any time.Overall, Thrive CFO is an exceptional company that is dedicated to providing personalised financial solutions that help their clients succeed. If you're looking for a financial firm that truly cares about your success, I highly recommend Thrive CFO.
Michael Dawson
Michael Dawson
15:48 02 May 23
Great experience with the team! Always willing to assist with questions and able to help guide my small business to ensure that I am compliant.
Riaan Schlebusch ITMC
Riaan Schlebusch ITMC
12:15 21 Apr 23
Professional, smart and friendly people.You only deal with the best of the best, and they know how to answer your questions, and they ensure that they understand you, and make they make sure to take the time to know your business.
See All Reviews
js_loader

Ready To Take Your Financial Success To New Heights?

Scroll to Top