Demand-ranked tax questions · Business · Question 08 of 20
Must a dormant company submit tax returns?
A company should not assume that dormancy cancels its filing duties. Check the return issued, its eFiling status and current SARS filing requirements. A nil or dormant ITR14 may still be required, and CIPC annual returns are a separate obligation from SARS tax returns.
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The points that decide the answer
- Dormant means no active trade, but bank charges, interest, assets, liabilities or shareholder loans may still create reportable figures.
- Outstanding returns can block tax compliance status and trigger penalties or estimated assessments.
- CIPC deregistration risk does not remove existing SARS obligations.
- Closing a company properly requires a final reconciliation, not simply abandoning the bank account.
A practical way to handle it
- Check CIPC status, SARS registrations and all open return periods.
- Reconcile bank, assets, liabilities and shareholder balances.
- File every return that is legally required.
- De-register tax products and the entity only through the correct processes.
Common mistakes
- Ignoring eFiling because turnover is zero
- Filing zeros while a bank account still moved
- Confusing CIPC annual returns with ITR14s
What to keep on file
Bank statements, prior financial statements, CIPC records, loan accounts and eFiling correspondence.
Source and scope
Based on current SARS guidance, reviewed on 28 August 2026. This is general information, not tax advice. Rates, thresholds and outcomes depend on the tax year and your facts. Regulated submissions and advice are handled through registered partners where required.