25 April 2018
Income tax returns for companies
The South African Revenue Service implemented changes to the annual income tax returns for companies on 26 February 2018 and relates to the ITR14 document used in the SARS e-Filing web process. Two new schedules were added. An example of this new ITR14 document is available on SARS’ website.
Claiming a learnership allowance in terms of section 12H of the Income Tax Act refers. Companies must disclose details of its registered learnerships in a separate schedule. In terms of this schedule, separate disclosure is required for learners with a disability and learners without a disability for both NQF levels 1 to 6 and NQF levels 7 to 10.
Additionally, companies must disclose the number of learners and the allowance amount for each of these fields.
Controlled foreign companies
Controlled foreign companies (“CFCs”) refers. Resident companies that hold at least 10 percent of the participation rights in any CFC (otherwise than indirectly through a company which is a resident), must submit a return to SARS. This can be found in section 72A of the Income Tax Act.
The IT10B Adobe PDF schedule has been replaced with a simplified Microsoft Excel IT10B schedule.
Companies must declare all CFC information in one consolidated schedule that can be uploaded to e-Filing as a supporting document. The new Excel IT10B schedule must be used and uploaded on e-Filing for all ITR14s submitted as from 1 June 2018.
Further amendments to note:
- Changes were introduced for groups of companies that prepare consolidated financial statements. Companies with subsidiaries are required to submit a complete group structure together with the ITR14.
- New questions with regards to the country-by-country reporting regulations have also been added. Companies that are subject to these regulations will have to specify the tax jurisdiction of the reporting entity for the multinational entity group as well as the name of the reporting entity. A number of additional line items have furthermore been added to the tax computation portion of the ITR14 to take other legislative amendments into account.