Companies subject to Administrative Penalties on outstanding Corporate Income Tax Returns
05 March 2019
By Herman Kuin, Assistant Manager, Tax Compliance, BDO in South Africa
Tax registered (even dormant) companies are required to submit their Corporate Income Tax returns within 12 months from their tax year-end.
SARS will impose penalties for the late submission of Corporate Income Tax returns, effective 28 January 2019. Companies that receive a final demand for an outstanding Corporate Income Tax return are required to submit the return within twenty-one business days. Failure to submit the return within the said period will result in SARS imposing an Administrative Penalty.
Administrative penalties range from R250 to R16 000 per month for as long as the non-compliance continues. This is limited to thirty-five months following the date of non-compliance, and depends on a company’s assessed loss or taxable income.
The following Administrative Penalty amounts will be imposed in terms of the Tax Administration Act:
|
Assessed loss or taxable income for preceding year
|
Monthly Penalty
|
|
Assessed loss
|
R250
|
|
R0 – R250 000
|
R250
|
|
R250 001 – R500 000
|
R500
|
|
R500 001 – R1 000 000
|
R1 000
|
|
R1 000 001 – R5 000 000
|
R2 000
|
|
R5 000 001 – R10 000 000
|
R4 000
|
|
R10 000 001 – R50 000 000
|
R8 000
|
|
Above R50 000 000
|
R16 000
|