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Business Evolution

Frequently Asked Questions

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Financial Statements
Submissions (VAT & IT)
PAYE (EMP201's)
HR & Payroll

Financial Statements

Why should we have Financial Statements?

Financial statements are necessary to keep track of what is going on in your business and your finances. Financial statements are used for financial planning and seeing where you can improve cash flow in the business.

Is there a legal obligation to have Financial statements done?

As all things pertaining to owning and running a business, there is a legal obligation in the Company’s Act to have Financial Statements done once a year.

When should we have Financial Statements?

Financial statements should be compiled once a year within 6 months of the business’s financial year end.

What information should we provide for Financial Statements?

Company registration document, list of assets and liabilities of the business, and a summary of all the income and expenses incurred during the financial period.

Who uses Financial Statements?

Financial statements are not only used by SARS for verification, but also by bank if you are applying for a loan and creditors se assess if you qualify for credit. Customers can also request your financials to assess if you are worthy of their attention. Shareholders and potential investors also use you statements to assess if your company will be a good investment.

Submissions of VAT & IT

Do you need to submit EMP201 & VAT201 returns every month?
EMP201s needs to be submitted on a monthly basis whereas VAT only needs to be submitted every second month depending on which months you have been registered for. Unless you are registered to submit VAT on a monthly basis
If my company is dormant, do I still need to submit Income Tax?
Yes, it is necessary to submit the IT return every year to be tax compliant. The return will be submitted as R 0.00 return and indicated as dormant
What is the tax rate on Corporate Income Tax I will have to pay?
If your company is either a private/public entity or a cc, the income is taxable at 28% BUT if you are a SBC then you will be taxable according to the SBC tables which are available on Sars website
When is submission due for VAT?
Manual VAT submissions is due by latest the 25th of each month and should be submitted at a branch, but if you submit online on eFiling then you have till the end of the month to submit the VAT201
What happens if I do not pay my returns on a timely matter?
You are liable for penalties and interests for any late payments unless you can prove it was paid on time, then Sars might consider to waiver the penalties & interests.
When is Personal Income Tax submissions due?
eFiling season for Personal Income Tax is July to November for non-provisional tax payers, provisional taxpayers it is only due by January the following year.
What is a Tax Clearance Certificate, how do I obtain it & for how long is it valid?
TCC is a document that confirms that your company is tax compliant – meaning that all the returns for PAYE, VAT, Provisional Tax & Income Tax are submitted and paid. You will be able to request a TCC pin on eFiling if your tax status is compliant. The TCC pin is valid for 12 months unless you miss any submissions or payments, then your tax status will show as non-compliant.

PAYE (EMP201)

If my company was registered for PAYE previously, but in recent years I did not have any staff on my payroll – do I still need to submit my PAYE returns?

Yes you still have to submit R 0.00 returns to stay compliant.

When is submissions due for PAYE?
PAYE is due for submission by latest the 7th of each month unless the 7th falls on a weekend or public holiday, then it should be submitted the day prior to the deadline
Am I able to receive a refund on PAYE?
PAYE is the only tax type where a taxpayer is not refunded, except for VAT and Income Tax. Any outstanding credits on paye account will be allocated to any outstanding amounts(returns) for either Income Tax or VAT. Unless there is amounts due on PAYE then credits can be allocated to it.

HR & Payroll

If my company was registered for PAYE previously, but in recent years I did not have any staff on my payroll – do I still need to submit my PAYE returns?

Yes you still have to submit R 0.00 returns to stay compliant.

Are Employment Contracts Compulsory?

Every employer is required by law (Basic Conditions of Employment Act – section 29) to provide the employee with a written contract of employment not later that the first day of commencement of employment.

Are Payslips Compulsory?
Pay slips ensure that employees receive the correct pay and entitlements and help employers to keep accurate and complete records. An employer is obliged to provide an employee with a proper payslip.
Can you claim you SDL (Skills Development Levy) contributions back?
20% of your contribution to the SDL can be claimed back by submitting your Annual Training report (ATR) and Workplace Skills Plan (WSP) to the SETA you are registered with.
What are your obligations under the Employment Equity Act?
All employers are required to follow the Employment Equity Act and Specifically make sure their employees receive equal pay for equal work. Only designated employers however are required to perform an analysis of their workforce and submit annual submissions to the Department of Labour.

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