Inactive Doesn’t Mean Exempt: How LEAN Assists Your Business in Filing Tax Returns to SARS
- Cedric Kamunga
- Jan 1
- 2 min read
Why Inactive Companies Are Still Required to File Tax Returns to SARS
Think your company is inactive, so SARS isn’t watching?
Think again.
Many South African business owners assume that if their company hasn’t traded, earned income, or issued invoices, they’re exempt from Filing Tax Returns to SARS. Unfortunately, SARS doesn’t see it that way. An inactive company is still legally required to submit tax returns, and failing to do so can quietly create serious compliance problems.
Whether your business is dormant, paused, or never fully launched, SARS still expects your paperwork to be up to date.
Here are three key topics we will explore to assist you in understanding tax filing with SARS:
What Tax Returns Inactive Companies Must Still Submit
In South Africa, inactivity does not remove your statutory obligations. SARS requires inactive companies to submit the same core returns—declared as “nil” or “zero”—to confirm no trading took place.
These typically include:
Inactive IRP6 provisional tax returns
Inactive IT14 / ITR14 annual income tax returns
Failing to submit these reports can flag your company as non-compliant, even if your income was zero.
How Missing Inactive Returns Can Hurt Your Business
Non-submission doesn’t stay invisible forever. Over time, SARS may automatically impose penalties or restrict your company’s status.
Common consequences include:
Administrative penalties accumulate monthly
SARS compliance blocks
Delays or rejections of tax clearance certificates
Problems reopening or selling the business later
Difficulty applying for funding or tenders
Many directors only discover these issues years later, when the cleanup becomes more expensive and stressful.
How Lean Business Consulting Helps Fix SARS Non-Compliance
This is where Lean Business Consulting steps in. We specialise in resolving SARS compliance issues for inactive and dormant companies—quickly and correctly.
Our services include:
Submission of inactive IRP6 tax returns
Submission of inactive IT14 / ITR14 tax returns
Full SARS compliance clean-ups
Direct engagement with SARS on your behalf
Rectifying historic non-compliance and penalties
We take the burden off your shoulders, deal directly with SARS, and help keep your business penalty-free—so you don’t have to navigate the system alone.
Get Compliant Before Penalties Add Up
If your company is inactive but not compliant, the sooner you act, the easier (and cheaper) it is to fix.
Conclusion: Inactive Doesn’t Mean Invisible to SARS
An inactive company is not exempt from SARS requirements. IRP6 and IT14 returns must still be submitted, even with zero income. Ignoring them can lead to penalties, compliance blocks, and long-term business headaches. If your company hasn’t traded but you’re unsure about your tax status, now’s the time to act. Have questions about inactive returns or SARS compliance? Leave a comment below or reach out—let’s get your business back on track.
Excellent service
Very interesting