As a South African business owner, compliance with various annual statutory returns is not just important, it is legally required. However, many entrepreneurs and company directors often confuse the different types of annual submissions that need to be made.
This blog will help clarify the differences between:
- The SARS IT14 Annual Income Tax Return
- The CIPC Annual Return
- The Return of Earnings (ROE) to the Compensation Fund (COID)
Let’s break them down.
1. SARS IT14: Annual Income Tax Return for Companies
| Feature | Details |
| Submitted to | SARS |
| Legal Basis | Income Tax Act, No. 58 of 1962 |
| Who Must Submit | All registered companies and close corporations |
| Submission Frequency | Annually |
| When to Submit | Within 12 months of the company’s financial year-end |
| Form Used | IT14 (or ITR14 for companies on eFiling) |
| Key Information Needed | Financial statements, income, expenses, tax calculations, schedules |
| Penalties for Non-Compliance | Administrative penalties and interest on outstanding tax |
2. CIPC Annual Return
The CIPC Annual Return is not a tax return, but a statutory requirement to keep your company registered and active on the Companies and Intellectual Property Commission (CIPC) database.
| Feature | Details |
| Submitted to | CIPC |
| Legal Basis | Companies Act, No. 71 of 2008 |
| Who Must Submit | All registered companies and close corporations |
| Submission Frequency | Annually |
| When to Submit | Within 30 business days after the anniversary of incorporation |
| Form Used | Online CIPC Annual Return form (via CIPC website or BizPortal) |
| Key Information Needed | Annual turnover, company contact details, financial accountability |
| Fees | Based on turnover; starts at R100 (non-submission can lead to deregistration) |
| Penalties for Non-Compliance | Deregistration of the company, administrative fees |
Important:
Even if your company is dormant or not trading, you must still file an annual return with CIPC.
3. Return of Earnings (ROE) – Compensation Fund
The Return of Earnings is submitted to the Department of Employment and Labour’s Compensation Fund, in terms of the Compensation for Occupational Injuries and Diseases Act (COIDA). It determines how much your business must contribute toward employee injury insurance.
| Feature | Details |
| Submitted to | Compensation Fund (Department of Employment and Labour) |
| Legal Basis | COIDA – Compensation for Occupational Injuries and Diseases Act |
| Who Must Submit | Employers with one or more employees, even if there is only 1 Director working within the Company earning a salary. |
| Submission Frequency | Annually |
| When to Submit | Between 1 April and 31 May each year |
| Form Used | W.As.8 (Return of Earnings) CF 2A – Return of Earnings Submission Form |
| Key Information Needed | Number of employees and Directors if any, total earnings paid, business activity |
| Penalties for Non-Compliance | Interest, fines, and ineligibility to obtain a Letter of Good Standing resulting to non-compliance |
| Purpose | Calculation of annual COID assessment (insurance for workplace injuries). To ensure the Company’s compliance and ensuring all employees are covered in the event of an accident or illness. |
Note:
Submitting the ROE and paying your assessment is required to receive a Letter of Good Standing, often needed for tenders and contracts.
Summary Table: Key Differences at a Glance
| Return Type | Submitted To | Purpose | Due Date | Penalties for Late Submission |
| IT14 (Income Tax Return) | SARS | Declare taxable income and pay company tax | Within 12 months of financial year-end | Penalties, interest, legal action |
| CIPC Annual Return | CIPC | Maintain legal company registration | 30 business days after incorporation date | Deregistration, admin penalties |
| Return of Earnings (ROE) | Compensation Fund (COID) | Declare staff/Director earnings for work related injuries and illnesses. | 1 April – 31 May annually | Penalties, interest, no Letter of Good Standing |