Tax season is upon us, and for businesses with a final year end 28 February in South Africa , that means juggling two important returns: the 2024/02 IRP6 and the 2023 ITR14. We know that tax returns can be quite confusing, hence in this guide we shed light on your 2024/02 IRP6 and 2023 ITR14 tax returns, helping you navigate the process like a pro.
First Up: The IRP6 (Provisional Tax Return)
Think of the IRP6 as your tax pre-payment plan. It allows you to estimate your taxable income for the year and pay tax in installments throughout the year, instead of one big lump sum later. The second IRP6 for the 2024 tax year is due on February 29th, 2024. Missed it? Don’t sweat it (too much), SARS offers extensions, but remember, penalties apply.
Who Needs to File an IRP6?
- Companies
- Closed corporations
- Trusts
- Individuals classified as provisional taxpayers (e.g., freelancers, independent contractors)
What You Need to File:
- Estimated taxable income for the full tax year
- Tax calculated on that income
- Details of any payments made (e.g., first IRP6, tax credits)
Pro Tip: Use SARS eFiling or a registered tax practitioner to make filing easier and avoid errors.
Next Up: The ITR14 (Company Income Tax Return)
This one’s for all the businesses out there. The ITR14 is your annual report card to SARS, summarizing your income, expenses, and taxable income for the previous financial year. The 2023 ITR14 deadline varies depending on your company’s financial year-end, but it’s generally due within 12 months of that date.
Who Needs to File an ITR14?
- All companies registered for income tax in South Africa
What You Need to File:
- Financial statements (income statement, balance sheet)
- Tax calculations and schedules
- Supporting documentation (e.g., invoices, receipts)
Pro Tip: Don’t wait until the last minute! Start gathering your documents early and make sure your financial records are accurate and up-to-date.
Remember:
- Penalties apply for late submissions and underpayments.
- SARS offers various resources and support to help you comply with your tax obligations.
- If you’re unsure about anything, consult a registered tax practitioner.
By understanding these two key tax returns and staying on top of deadlines, you can avoid unnecessary stress and ensure your business stays compliant. Now go forth, conquer your tax returns, and remember, you’re not alone!
Bonus Tip: Share this article with your fellow South African business owners! Let’s help each other navigate tax season smoothly.
