SARS has warned taxpayers that administrative penalties will be imposed for outstanding corporate (companies and close corporations) income tax returns from 1 December 2018.
SARS had previously only levied penalties for outstanding income tax returns in the case of outstanding personal income tax returns.
The penalties range from R250 to R16,000 per month that non-submission of these returns continues.
The exact amount of the penalty will depend on the Rand amount of the company’s assessed loss or taxable income. The table used to determine the monthly penalty amount is
Assessed loss or taxable income for ‘preceding tax year’ Penalty per month
Assessed loss R250
R0 – R250 000 R250
R250 001 – R500 000 R500
R500 001 – R1 000 000 R1 000
R1 000 001 – R5 000 000 R2 000
R5 000 001 – R10 000 000 R4 000
R10 000 001 – R50 000 000 R8 000
Above R50 000 000 R16 000
To prevent penalties being imposed, corporate taxpayers, including dormant companies, should ensure that outstanding returns are submitted to SARS before the end of November 2018.
Personal income tax penalties
Please note that exactly the same penalty legislation for non-submission of income tax returns applies to individual taxpayers, and has done so for some years now.
