08/09/2026
In South Africa, the South African Revenue Service (SARS) requires every registered company to file an annual income tax return (ITR14), even if the company had zero financial activity and must submit a "nil" return.
Key Rules for Dormant Companies
• No Automatic Exemption: Registering a business creates an ongoing legal obligation. "Dormant" is a state of activity, not an official status that excuses you from filing.
• Penalties Apply: If you fail to submit returns for an inactive business, SARS charges administrative penalties (typically R250 per month that the return is outstanding). These penalties stack up monthly and keep growing until you file the missing paperwork.
• What "Dormant" Means to SARS: A company is only considered dormant for a tax period if it did not trade, earn income, or spend money at all during that full assessment year. If it traded for even one month, it files as an active company.
12/08/2026
26/06/2026