The Corporate Income Tax often referred to as CIT is a tax which is set forth authoritatively as obligatory on RSA companies incorporated under the laws which are efficaciously managed in SA and obtain income from within or outside South Africa.
Foreign Companies that operate in South Africa, either through a branch on a permanent basis, are subject to tax on all income from a source within SA.
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A list of companies that CIT is applicable and liable under the Income Tax Act, 1962 for payment of tax on all income received within a financial year:
- Dormant Companies
- Listed public companies
- Private Companies
- Close Corporations
- Collective Investment Schemes
- Small Business Corporation (s12E)
- Body Corporates
- Unlisted public companies
- Public Benefit Companies
- Share Block Companies
All businesses liable for taxation are required to register with SARS as a taxpayer under the income tax Act 1962. Ensure all details are correct before submitting your ITR14.
Ensure you submit the annual tax return as well as provisional tax returns because every company is required to do so.
Paying Corporate Income Tax (CIT)
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- When it comes to provisional tax, your first payment is supposed to be within 6 months of the assessment year.
- Second payments are made just before the last day of the assessment year
- Then, finally, the 3rd payment is done 7 months after the assessment year for taxpayers with Feb Year-End.
- CIT (Corporate Income) is payable at a 28% rate.
How To Pay For Corporate Income Tax (CIT)
[ht_message mstyle=”info” title=”” show_icon=”” id=”” class=”” style=”” ]You can make payments through online banking, EFT, Bank payments, eFiling or Swift payment method for foreign payments.[/ht_message]
For more information visit www.sars.gov.za
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