SARS COMPLIANCE
SIPHOSETHU MARTINS
Finance and Monitoring and Evaluation Manager at Propella Business Incubator
SARS compliance
There are at least three tax returns that needs to submitted to SARS every year for your business to be tax complying.
The first return is called 1st Provisional tax also known as IRP6.
This return should be submitted on or just before 31st August every year. The bookkeeper or an Accountant needs to calculate your business taxable income for the first six months of year of assessment (Mar-Aug).
At this stage an estimate should be done on whether the business will be making a taxable income at end of the year. If the Accountant foresee a taxable income at the end of the year a reasonable tax amount will be calculated which will be due in September. Once all the calculations have been an IRP6 return will then be submitted to SARS.
If you don't submit this return by the 31st of August you won't be able to get a Tax Clearance Certificate from September on-wards until the return has been submitted.