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Annual Returns for Partnerships in South Africa

Last updated: 2026-03-19

Partnerships have no CIPC annual return obligation because they are not registered entities. The annual compliance burden falls on each individual partner, who must declare their share of partnership income on their personal ITR12 tax return. The partnership itself does not file a tax return — income is allocated to partners and reported individually.

Each partner is a provisional taxpayer (assuming their non-salary income exceeds R30,000) and must file two IRP6 provisional tax returns per year. The first provisional tax payment is based on the partner's estimated share of annual partnership profits. Getting this estimate right is important because underestimation penalties apply if the actual income exceeds the estimate by more than 20%.

If the partnership is VAT-registered, it submits VAT returns (VAT201) as a single entity. The partnership — not individual partners — is the VAT vendor. VAT collected and paid is a partnership-level obligation. Similarly, if the partnership employs staff, PAYE and related returns are filed in the partnership's name.

Related reading: our CIPC annual returns guide.

Step-by-Step Process

  1. 1

    Prepare partnership financial records

    Compile all partnership income, expenses, and capital transactions for the financial year.

  2. 2

    Allocate income to partners

    Distribute partnership profit/loss among partners according to the partnership agreement. Document the allocation clearly.

  3. 3

    Each partner files ITR12

    Each partner declares their share of partnership income on their personal ITR12 under the business income section.

  4. 4

    File provisional tax returns

    Each partner files two IRP6 returns per year, estimating their share of partnership income plus any other taxable income.

  5. 5

    File VAT returns (if registered)

    The partnership files VAT201 returns as a single vendor. This is a partnership-level obligation, not individual.

Key Requirements

Key requirements
Requirement
Individual ITR12 filed by each partner
Provisional tax (IRP6) for each partner — two per year
Partnership financial records maintained
VAT returns if partnership is VAT-registered
Records retained for five years per partner

Important Deadlines

Important deadlines
Deadline
Individual ITR12: per SARS filing schedule
Provisional tax: 31 August (first) and last day of February (second)
VAT returns: 25th of month following period end
No CIPC deadlines (partnerships not registered with CIPC)

Fees & Costs

Fees and costs
ItemAmount
Partnership accounting (shared cost)R5,000–R20,000
Individual tax return per partnerR1,000–R5,000

Non-Compliance Penalties

Non-compliance penalties
Penalty
Late ITR12: R250–R16,000/month per partner
Underestimation of provisional tax: 20% penalty per partner
Late VAT returns: 10% penalty plus interest
Each partner bears their own penalty risk independently

Frequently Asked Questions

Does a partnership file a tax return?
No. The partnership itself does not file an income tax return. Each partner declares their share of partnership profit on their individual ITR12. The partnership prepares financial statements to calculate the profit, but the tax return is individual.
How is partnership income split for tax purposes?
Partnership income is allocated according to the partnership agreement. If no agreement exists, the common law default is equal sharing. SARS expects the allocation to be consistent with the agreement and commercially reasonable. Income-splitting arrangements designed purely for tax avoidance may be challenged.
Can one partner's tax non-compliance affect the other partners?
Not directly for income tax — each partner is responsible for their own tax return. However, if the partnership fails to file VAT returns or PAYE returns, all partners are jointly and severally liable. SARS can pursue any partner for partnership-level tax obligations.

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