Whether you’re a Konsise user or not, this article breaks down the key 2025 ITR14 updates you need to watch out for to ensure compliance and avoid any surprises when filing.
Classification types
Whether an entity is classified as dormant or not, SARS has added additional questions to identify if an entity is further classified as either a:
- Co-operative
- Association
- Collective Investment Scheme
This has been added to the existing classification types of non-profit company, body corporate and share block.
Additional information is now required for the following business types:
Body corporate updates
With body corporates, additional questions have been added to confirm:
- Registration with the deeds office
- Deeds Office Registration Number
Share block updates
Share block companies are now required to declare beneficial ownership information.
Membership and share reporting
Register reporting is also shifting. Previously, only share information was required for entities where shareholding was applicable. The new updates make allowances to capture member information for those business types where shareholding is not applicable.
If you answer “Yes” to “Does the company have members?”, you’ll need to disclose the top 20 members in a membership register. The details change depending on whether the member is an individual, a company, a trust, or other entity type.
Other updates with regard to memberships include:
- The question “Does the company have members?” has been moved in the Wizard to the Company Information container.
- Catering for Non-profit companies without members (done by answering No to the “Does the company have members?” question)
Furthermore, foreign companies should now complete the share or membership register without needing to disclose Contributed Tax Capital details.
These additions further highlight the efforts towards financial transparency and the prevention of financial crimes.
Income statement and tax computation changes
Two new Income Statement fields have been added to all company types: Foreign Exchange Gain and Foreign Exchange Loss.
The following fields have been added to the tax computation for all micro businesses to align with other company types:
- Foreign Exchange loss adjustment (s24I)(excluding s24I(4))
- Foreign Exchange loss adjustment relating to debt (s24I(4))
- SARS Interest repaid (S7F)
- Foreign exchange gain adjustment (s24I)(excluding s24I(4))
- Foreign exchange gain adjustment relating to debt (s24I(4))
SARS interest repaid (s7F) updates ensure consistency between financial values displayed in various sections of the form. Additional validation has been added to align the value declared in the Income Statement for SARS interest repaid (s7F) to the amount declared in the “Amount of SARS interest repaid that was previously taxed i.t.o. s7E” in a separate form container.
Furthermore, the value declared in the Income Statement for SARS interest repaid (s7F) will automatically populate the related field in the Tax Computation container section.
In addition, validations have been added to ensure that, for amounts deemed to be dividends in specie (s8F and s8FA), the debit adjustment in the tax computation cannot exceed the corresponding income item.
REIT distributions: new yes or no questions if you claim section 25BB
If any value greater than 0 has been captured for “Qualifying distributions by a REIT (s25BB)”, the following additional questions have been added under the Tax Allowances section:
- Has the company correctly determined the ‘qualifying distributions’ with reference to section 25BB(1) read with section 25BB(2A)?
- Has the company correctly limited the amount of ‘qualifying distributions’ claimed in the Tax Computation under “Qualifying distributions by REIT (s25BB)” with reference to section 25BB(2)(b)?
The above changes by SARS have been adequately accommodated in the Konsise system. We remain committed to staying abreast of all changes that impact your tax compliance.
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