Updates to the Income Tax Return for companies (ITR14)
The correct completion of the annual income tax return remains an important obligation for all taxpayers, including companies. This article highlights some of the key changes expected in the new ITR14, soon to be released on e-filing.
Updates to the Share Register Section
The question: ‘How many shareholders hold 5% or more of this class of shares?‘ has now been replaced by a new rule requiring companies with 20 or more holders of shares per class of shares to complete the details of the top 20 holders of the beneficial interest in that class of shares.
If the tax reference number of the Holder of the Shares is not completed, an additional field has now been included to provide the reason why the tax reference number is not available. A field for the completion of the cell phone number for each holder of shares has also been added to the “Details of Holders of Shares” section.
New Beneficial Ownership Section
For the first time, the return now requires detailed information relating to Beneficial Ownership. The beneficial owner refers to the natural person, in other words, the warm body, who indirectly or directly influences, owns or directs the affairs of a specific company.
The new question, “How many beneficial owners does the company have?”, allows for the capture of up to nine beneficial owners.
To complete the beneficial owner section of your ITR14, you’ll need the following information:
- First name
- Other name
- Surname
- Initials
- Date of birth
- ID number
- Passport number, along with the passport’s country of issue and issue date
- Whether the individual is registered for tax in South Africa
- Tax reference number
- Email address
- Reason for beneficial ownership
These changes signal a move towards tighter regulation and oversight, aligning with broader global efforts to increase financial transparency and prevent financial crimes. SARS, CIPC, and the Master’s Office are set to benefit from this enhanced data-sharing model.
Conclusion
The new requirements regarding companies’ share and beneficial ownership registers are important, and care should be taken that the correct information is submitted. As the ITR14 continues to evolve, businesses must stay on top of these changes. Whether by updating internal systems, leveraging external software solutions, or seeking professional tax advice, maintaining compliance should remain a priority.
