On 3 July 2020, the South African Revenue Service (SARS) published Notice 741 in terms of section 25 for submission of 2020 income tax returns for both legal entities and natural person. This notice provides information about eligible legal entity to file tax return for the year 2020 and gives the specified period to submit the return. Note that, the forms prescribed by the Commissioner for the submission of income tax returns are obtainable on request via eFiling or can be downloaded from the SARS website.
Company who must submit an income tax return
- Every company or other juristic person, which was a resident during the 2020 year of assessment that—(i) derived gross income of more than R1 000; (ii) held assets with a cost of more than R1 000 or had liabilities of more than R1 000 at any time; (iii) derived any capital gain or capital loss of more than R1 000 from the disposal of an asset to which the Eighth Schedule of the Income Tax Act applies; or (iv) had taxable income, taxable turnover, an assessed loss or an assessed capital loss.
- Every trust that was a resident during the 2020 year of assessment;
- Every company, trust or other juristic person, which was not a resident during the 2020 year of assessment, that— (i) carried on a trade through a permanent establishment in the Republic; (ii) derived income from a source in the Republic; or (iii) derived any capital gain or capital loss from the disposal of an asset to which the Eighth Schedule to the Income Tax Act applies;
- Every company incorporated, established or formed in the Republic, but that was not a resident as a result of the application of any agreement entered into with the Government of any other country for the avoidance of double taxation during the 2020 year of assessment.
Filing deadlines
Under the new notice, companies are required to submit the income tax return within 12 months from the date on which its financial year ends. In the case of all other persons (which include natural persons, trusts and other juristic persons, such as institutions, boards or bodies)—
(i) on or before 22 October 2020 if the return is submitted electronically through the assistance of a SARS official at an office of SARS or manually;
(ii) on or before 16 November 2020 if the return does not relate to a provisional taxpayer and is submitted by using the SARS eFiling platform;
(iii) on or before 29 January 2021 if the return relates to a provisional taxpayer and is submitted by using the SARS eFiling platform; or
(iv) where accounts are accepted by the Commissioner in terms of section 66(13A) of the Income Tax Act in respect of the whole or portion of a taxpayer’s income, which are drawn to a date after 29 February 2020 but on or before 30 September 2020, within 6 months from the date to which such accounts are drawn.
