Financial Year End Explained

[@coeniejvr]

Not sure if you can help me, i've Created my company last year August 2022. So my financial year is Feb and August. Now this is where things get confusing for me as everything is still new to me. My company is a real estate business and in feb 2023 i filed a dormand with my accountant as the company awaited for our ffc to operate. We have received the FFC just now in at the end of July 2023. So do we file again with sars in August 2023 or do we file only with sars at the end of the financial year which is Feb each year. Second Question is regarding Audits, when do we need todo Audits on my company as we required by the ppra todo Audits every year, they have a deadline on their website that says 31 August but do we do the Audit every 1 August of the year?

[@swiftreg]

Hi Coenie, with SARS you only have one financial year end (every 12 months) and in your case, that it is the end of February. The PPRA is a separate institution with their own regulations. I am sure you could submit your Feb SARS audit in August to the PPRA, however if that is not acceptable you could move your SARS financial year end to a more practical date in order to coincide with your PPRA submission date. I hope this helps you.

[@coeniejvr]

@@swiftreg no it doesn’t sounds right. Because i file in February but then what am I supposed to do in August. Cisp has given me 2 months. Feb and August. Feb is the year end, that i know, but are you telling me I only file company tax every Feb? What is the August month then for? The accountant i have is terrible and can’t even explain how companies work. I’m in searching for a new accountant that is clue up about cisp and sars filling tax and year ends, also that knows about Audits and who works with real estate agencies.

[@nokukhanyamkize4481]

Hi just to be clear a financial year ending in Feb means... 2022 tax year is 1 March 2021 to 28 Feb 2022, does this mean that tax returns for financial year ending 2022 captures 2021 returns? I hope that makes sense

[@swiftreg]

Yes, you are correct. The 2022 Financial year will capture data from 1 March 2021 to 28 Feb 2022

[@bahle]

If I'm registering a company on January 2024 and decide financial year end to be February...will i be required to submit files for February 2024 or the following February 2025?

[@swiftreg]

Hi there, yes that is correct. Remember you can always extend the financial year end or if you have not done any business you just need to submit a nil return. I suggest you ask your accountant to assist you. Good Luck!