EMPLOYER RECONCILIATION DECLARATION (EMP501)
Submission of your Employer Annual Reconciliation (EMP501) and Employee Tax Certificates [IRP5/IT3 (a) s] is due from 1 April to 31 May for the transaction periods of:
- Interim period: transaction period from 1 March to 31 August or
- Annual period: full tax year from 1 March to 28/29 February.
The interim reconciliation was introduced in September 2010 and was intended to assist employers by:
- Enabling an easier and more accurate annual reconciliation submission
- Maintaining an up-to-date employee database and
- Registering employees for Income Tax purposes, as required.
Summary of what is required:
- Deduct the correct amount of tax from employees
- Pay this amount to SARS monthly
- Reconcile these deductions and payments during the annual and the interim reconciliation and
- Issue tax certificates to employees.
SARS can impose penalties if the submission is late, inaccurate or does not balance. Beat the deadline of 31 May by submitting your EMP501 Reconciliation early.
We can assist in completing this accurately and timeously for you.
Income Tax Returns
The tax season commences on 1 July each year and the deadlines for the submission of returns are as follows:
- Individuals (ITR12) and Trust (IT12TR) returns (non-provisional tax payers): last working day of September for postal submission or the last working day of November for E-filing via your PC or laptop or done electronically by SARS
- Individual (ITR12) and Trust (IT12TR) returns (provisional tax payers have until 31 January to submit their completed ITR12 Income Tax Returns to SARS
- Companies /Close Corporation (IT14) Returns must be completed and submitted within 12 months after the financial year end of the Company/Close Corporation
From the information furnished in the Income Tax Return SARS will issue an assessment showing either tax due or refundable, if applicable. The deadlines must not be missed: if you submit your returns after the deadline you will face administrative penalties of each return that is outstanding. SARS has implemented serious tax penalties and interest on monies outstanding and as a consequence it is essential to have your books and tax administration correctly and timeously done.
It is therefore crucial to ensure that returns are submitted prior to the closing dates for final submission. Whether you are an individual, small to medium sized business, corporate company or massive enterprise everyone needs a professional tax service, contact us to assist you with the submission of your returns through E-filing to SARS. We provide a full range of tax services from making sure you are registered, receiving and completing forms correctly to submitting your tax returns on time.
You have the option of downloading the E-filing App on your Smart phone or registering online: SARS E-Filing
Anyone can file their tax returns, but the easiest, most efficient and reliable option is to leverage our support to ensure that your returns are submitted accurately and timeously.
Company Tax Returns
The company tax return is a legally binding declaration to identify all income received or accrued and all income taxable in the hands of the company.
Are you aware of the recent changes regarding the IT14 return?
The IT14 return has been replaced with a new ITR14 which has new legislative requirements. Large companies will need to complete and submit a more comprehensive return and smaller companies will be required to complete a shortened and simplified return. The company tax return is a legally binding declaration to identify all income received or accrued and all income taxable in the hands of the company. The ITR14 must be completed and submitted within 12 months after the financial year end. It is imperative that the deadlines are not missed as you will be liable for administrative penalties on each return that is outstanding.
Submission of relevant supporting material with the ITR14
For Small Business and medium to large businesses, the submission of signed off Annual Financial Statements (AFS) is compulsory.
Required Information to complete a Tax Return
- The Tax Reference number
- Particulars of the company/CC
- The year of assessment
- Particulars of the Public Officer
- Bank account details
- Financial information in the form of AFS
- Details of capital/revenue generated
Whether you are a small to medium sized business or a large corporate company, contact us and we will assist you with the submission of your returns through SARS E-filing. We also do manual submissions where necessary.
Provisional Tax Returns
Everyone is required to register with SARS as a provisional taxpayer and do two provisional tax returns a year. This is irrespective of what you earn – if you have more than one income (such as a second job or receive rental income or receive interest income) or if you run your own business.
Once a year you are also required to file your Annual Tax Return (IT12) with SARS. This serves as a double check that you have paid the correct amount of tax during the year. Provisional tax is a way for SARS to get their money on a bi-annual basis from you instead of waiting until you are assessed after year end.
Companies automatically fall into the provisional tax system – this is a system that makes taxpayers provide for their final tax liability by paying a minimum of two amounts during the course of the year of assessment. Final liability, however, is determined upon assessment. The aim is to help taxpayers meet their liabilities in the form of two payments made from income received during the tax year, instead of in the form of a single, large sum after the end of the tax year. A third payment after the end of the tax year is optional.
The first provisional tax payment must be made within six months of the year of assessment.
The second payment must be made no later than the last working day of the year of assessment.
The third payment is voluntary and may be made:
- within seven months of the year of assessment, where the year of assessment is February, and
- within six months of the year of assessment, for any other year of assessment