Navigating tax compliance obligations is a critical aspect of maintaining a robust financial framework for any business entity incorporated in South Africa. Among the various requirements, the accurate completion of the annual Income Tax Return (ITR14) stands as a cornerstone. Recently, the South African Revenue Service (SARS) introduced updated guidelines, imposing detailed reporting standards pertaining to a company’s share register within the ITR14. In this article, we delve into the significance of these shareholder reporting requirements and clarify the implications for companies operating in South Africa.
In a notable development, companies are now required to provide precise details concerning every category of shares allocated. This includes:
- Description of the class of shares
- Total number of shares issued
- Number of shareholders
If the shareholder is an individual (natural person), the following details must be provided:
- Surname
- First name
- Other name
- Initials
- Date of birth
- ID number
- Passport number, country, and issue date (this is only required if the individual does not have a South African ID number)
- Tax registration status in South Africa
- Tax reference number
- Email address
- Number of shares owned
Should the shareholder is another company, SARS will require the following infomration to be provided:
- Nature of business
- Registered name
- Trading name
- Country of registration
- Company/CC registration number
- Financial year-end
- Tax reference number
- Number of shares
- Contact details (initials, surname, cell number, email address)
Further comments regarding South Africa: Shareholder Reporting Requirements on the ITR14:
It’s important to note that the ITR14 tax return cannot be submitted without disclosing the share register information. This requirement applies to all ITR14 returns for the 2022 tax year and subsequent years submitted to SARS on or after 23 June 2023.
Ensuring compliance with these reporting requirements is essential to avoid penalties and maintain regulatory adherence. Companies should carefully gather and accurately provide the necessary information to fulfill their obligations under the ITR14.
For further assistance or clarification regarding shareholder reporting requirements on the ITR14, don’t hesitate to contact our team at InterGest South Africa. We’re here to support you in navigating tax compliance matters and ensuring smooth operations for your company.
Get in touch today by sending an email to contact@intergest.co.za
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Source: SARS
