The difference between Annual Returns and Return of Earnings.

Many businesses owners assume that annual returns and returns of earnings are the same submission made to the same institution, which is incorrect and can in some cases lead to a very expensive misunderstanding.

It is therefore very important that companies read and understand all parties and institutions they need to stay compliant to.

All companies must submit their annual returns on the anniversary of the month the company was registered at CIPC to ensure the company’s compliance with the Companies and Intellectual Properties Commission. Companies will be required to submit their annual turnover, on which their fee will be calculated. Failure to submit return of earnings of more than three consecutive years, will result in the de-registration process.

Return of earnings must be submitted to the Workman’s’ Compensation Fund during March each year. These earnings are the final earnings of the employees and directors of the previous financial year. They will then also have to submit their provisional earnings (forecast) for the following financial year. Based on the information provided, the nature of the business, the number of employees and the risk involved, the Compemsatin Fund will calculate the assessment fee payable.

This assessment fee must be paid to them within 30 days of the notice of assessment received. A penalty of 10 % of the final assessment will be imposed if you submit your return of earnings of the due date. Interest of 15 % is then charged every month until the account is settled.

Book your return of earnings service with us before April 2024. The Compensation Fund will be offline from 1 March 2024 to 31 March 2024 for submissions due to their Financial Year end.

Certain Compensation Fund Services will not be available during March 2024. Please contact us for more information.