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CHANGES TO INCOME TAX RETURNS FOR COMPANIES

CHANGES TO INCOME TAX RETURNS FOR COMPANIES

28 May 2018

SARS implemented several changes to the annual income tax returns for companies (the ITR14) on 26 February 2018 as part of SARS’ ongoing efforts to promote efficiency and compliance.

Two new schedules were added to the ITR14:

  • The first schedule relates to companies that wish to claim the learnership allowance in terms of section 12H of the Income Tax Act[1]:
    1. the details of its registered learnerships must now be provided in a separate schedule.
    2. In terms of this schedule, separate disclosures are required for learners with a disability and learners without a disability for both NQF levels 1 to 6 and NQF levels 7 to 10.
    3. The number of learners and the allowance amount for each of these fields must be completed in the schedule.
  • The second schedule relates to Controlled Foreign Companies (“CFCs”).
    1. A company that holds at least 10 percent of the participation rights in any CFC, must submit a return to SARS. The previous schedule has been replaced with a simplified Excel schedule, which enables companies to declare all CFC information in one consolidated schedule.
    2. From the 1st of June 2018, the schedule must accompany the submitted return. The schedule can be uploaded via e-Filing as a supporting document, regardless of the number of CFCs.

Further amendments for groups of companies:

  • Companies with subsidiaries are required to submit a complete group structure together with the ITR14.
  • Additional questions with regard to the Country-by-Country (“CbC”) reporting regulations have also been added. Companies that are subject to these regulations will have to specify the tax jurisdiction of the reporting entity for the multinational entity group as well as the name of the reporting entity.

An example of the new ITR14 template is available on the SARS website.  Companies should carefully consider these new requirements in order to ensure that the updatedITR14 is completed correctly and that all the required supporting documentation is submitted together with the ITR14.

Companies that have already created the new tax returns on e-Filing, not yet submitted, must refresh the return in order to request the revised ITR14.

How can we assist:

Contact us directly if you require any assistance on completion of the revised ITR14 or let us review, complete and submit your ITR14 on your behalf.

 

 


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