There are three container types, one being micro and one for a small-size company and one for a large size company. The selection of the container types must be selected on the front ITR14 screen by putting in the total turnover and the total amount of the assets. This will automatically create the container type. Each container type has its own set of source codes, starting small and going large on the large container type. Please remember that SARS does not use source codes they use descriptions only and sometimes there is confusion. Once set the container type should not be changed.
Where you have selected the amounts that you put in a medium sized container on your trial balance some of the line items will not fit because the source code is not there and SARS has specified that they don’t want that information, they only want the breakdown specifically for the specified container type. It is therefore very important that you obey the rules of the source code list and don’t try and break it down because your trial balance is more detailed. Where necessary the figures have to be consolidated. Before you file the system will compare the totals of the sales and the assets to what you have entered on the front screen so in many instances you will go in and change those figures, however if you change the container type it will get rid of a whole lot of line items because the system doesn’t need the detail and it will be necessary to start again.
Micro business:If the gross income specified is equal or less than R1 million and the total assets is equal or less than R5 million, the business will be classified as a Micro Business, the Micro/ Body Corporate / Share Block : Balance Sheet, Income Statement and Tax Computation container must be completed.
Small business:If the gross income specified is equal or less than R20 million and the total assets is equal or less than R10 million and the business is not already classified as a micro business, then the business will be classified as a Small Business and the Small Business: Balance Sheet, Income Statement and Tax Computation container must be completed.
Medium to Large business:If none of the above conditions apply, then the company will be classified as a medium to large business , then the Medium to Large Business: Balance Sheet, Income Statement and Tax Computation container must be completed.
