Deregistering a company with SARS is an important step when a business is no longer active, no longer generating income or when the owners decide to wind it down permanently. Closing a company is not as simple as stopping operations; SARS requires you to follow a formal process so that your tax obligations end correctly. This prevents penalties, unnecessary returns and compliance issues in the future. Understanding what SARS expects, what documents you must prepare and how the process works makes deregistration smooth and stress-free. The sections below explain the process clearly so you know exactly how to complete it.
- Understanding What Deregistration Means
When you deregister a company with SARS, you are telling the tax authority that your business has stopped trading and no longer needs to submit tax returns. Deregistration does not happen automatically. SARS first checks whether your company has any outstanding returns, penalties or debts. Only when everything is up to date can SARS approve your deregistration request.
- Ensuring All Tax Returns Are Up to Date
Before you apply, you must confirm that your company has submitted all its required tax returns. These may include income tax returns, VAT returns, PAYE submissions or provisional tax returns. Even if your company earned no income, you must file returns marked “zero income” to close those periods. SARS will not deregister a company that has incomplete tax submissions.
- Settling Any Outstanding Tax Debts
If your company owes SARS money, the debt must be paid before deregistration can continue. SARS will inform you of all amounts due, including penalties and interest. Settling these balances ensures that your company leaves the system in good standing. In cases where you believe an amount is incorrect, you must resolve the dispute before moving to the next stage.
- Submitting a Deregistration Request to SARS
Once everything is up to date, you submit a formal deregistration request. This is done through SARS eFiling or by visiting a SARS branch if necessary. On eFiling, you go to the “SARS Registered Details” section and indicate that the company has ceased trading. You may be asked to provide the date the business stopped operating and supporting documents to confirm closure.
- Waiting for SARS Verification and Approval
After submitting your request, SARS reviews your account to ensure there are no outstanding issues. If everything is in order, SARS updates your company’s status to “deregistered.” If additional documents or clarifications are needed, SARS will notify you. Once confirmed, you will no longer be required to file returns or maintain active tax compliance.
- Deregistering With CIPC If Necessary
If you are closing the company permanently, you may also need to deregister it with CIPC. SARS and CIPC share information, so closing the company at CIPC usually completes the process on both sides once all tax matters are finalised. This ensures the business is legally and officially dissolved.
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