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Shannon says: 1 March 2024 at 14:07 I registered a company in May 2023 and did not make a profit during the tax year up to 29 February 2024. I understand that I still need to file a provisional tax return with SARS, but it does not look like I can enter a negative figure in "Taxable Income" in the IRP6 form. Do I need to enter zero - as in there was no taxable income? In that case, does that mean that I cannot carry the loss forward to next year? |
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TaxTim says: 4 March 2024 at 8:23 Yes, on the provisional tax return, losses cannot be declared as it is limited to nil. Remember, the provisional tax return works out the tax payment the company needs to make. If the company made a loss in your situation, there will be no payment due on the provisional tax return (IRP6) and the final amount to pay will be nil. It is important to note that provisional tax is simply a way to pay taxes towards the company's final income tax liability, if applicable. Within 12 months of the company's year-end, you are required to submit a company income tax return (ITR14) on which the actual income and expenses are declared. If the company is in an overall loss position, this loss will be carried over to the following tax year. |
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