Annual Tax Returns, Annual CIPC Returns and Annual Financial Statements
There’s a lot of confusion about the meaning of Annual Returns to CIPC, Annual Tax Returns and Annual financial Statements, so let’s try to clear this up.
Annual Returns to CIPC
CIPC is the Companies and Intellectual Property commission. Every company and CC must submit two Annual Returns. One confirms the Directors (of companies), Members (of CCs), auditors, company secretaries with contact details of all of these together with the Registered Office Address. The other is a Financial Accountability Statement. An annual return fee is also payable (anything from R100 to R4 000). The return is due from the anniverary of the date of registration (and during the month following that anniversary). Failure to submit an Annual Return for about two years leads to de-registration. The re-registration process is a nightmare, and in most cases is impossible, so don’t let this happen. We can submit your CIPC annual returns for you or, under some circumstanes, get you re-registered if you were finally de-registered. Companies that are “In de-registration process” need only to submit all outstanding returns and they will be restored to good standing.
Annual (Tax) Return to SARS
Every company or CC, whether actually trading or not, must submit an Annual Tax Return to SARS on or before the end of its following financial year end (so a year ended 28 February 2019 return is due by 29 February 2020). It is submitted on line together with signed off annual financial statements (see below). Failure to submit on time leads to administrative penalties of between R250 and R16 000 for every month of the delay. We can submit for you.
Annual Financial Statements
All CCs must prepare Annual Financial Statements signed by their Accounting Officer. If they are very big (like around R300m turnover), the financial statements must be audited.
Most companies are owner managed, that is the directors and shareholders are the same people, and these do not need to prepare any special annual financial statements, unless they want to. Usually a simple Income Statement and Balance Sheet, printed from their accounting software serves the purpose. Often, however, the bank will want something a bit more fancy and this can be prepared by us.
Companies owned by trusts are not owner managed.
Other Annual Returns
Then there are the EMP501 returns if you deduct PAYE. These fall twice each year.
Provisional Tax Returns, also twice a year.
And on and on. That’s why we are here for you.