Public Interest Score South Africa 2026: What It Is and Whether Your Company Needs an Audit

Every registered South African company must calculate a Public Interest Score at the end of each financial year. Most company directors have no idea this obligation exists — and many who do know it exists are not sure what it means for their specific company.

Your Public Interest Score determines three things: whether your annual financial statements must be audited, whether an independent review suffices, or whether a basic compilation is all that is required.

What the Public Interest Score is

The Public Interest Score is the measure of public interest in a specific company, determined by considering the potential social footprint of the company and its potential impact on the public. The PI Score determines whether an independent audit or independent review is required.

Beyond audit requirements, the PIS indicates: financial reporting standards to use, whether a Social and Ethics Committee is needed, the size classification for business rescue practitioner appointment, and whether financial statements must be filed with CIPC.

How to calculate your Public Interest Score

The Public Interest Score is made up of four components, each scored independently and then added together.

Employees: One point per employee — calculated as the average number of employees during the financial year. This includes all employees: permanent, fixed-term, and part-time.

Turnover: One point for every R1 million, or part thereof, in annual turnover. A company with R3.5 million in turnover scores 4 points.

Third-party liabilities: One point for every R1 million, or part thereof, owed to external parties. This excludes group loans, shareholder loans, and trade payables to group companies.

Beneficial shareholders: One point for each individual with beneficial interest in the company's issued securities.

Example calculation

What your score means — the three thresholds

PIS below 100

Owner-managed companies with a PIS below 100 are not required to have a mandatory audit or independent review. Non-owner-managed companies in this range may still require an independent review, depending on how the financial statements were compiled.

PIS between 100 and 349

If financial statements are internally compiled — an audit is required. If independently compiled and the company is non-owner-managed — an independent review is required. Owner-managed companies with independent compilation may not need either.

PIS of 350 or more

An audit is required regardless of ownership structure or how the financial statements were compiled. Companies at this level must also submit financial statements in XBRL format to CIPC.

PIS of 500 or more

In addition to the audit requirement, companies with a PIS of 500 or more must appoint a Social and Ethics Committee in terms of the Companies Act.

The owner-managed distinction

A company is owner-managed when all shareholders are also directors and no juristic persons hold shares. The moment any shareholder is not a director, the company is no longer considered owner-managed.

This distinction matters because owner-managed companies face lighter audit obligations below a PIS of 350. If your company has even one shareholder who does not serve as a director — or if a trust, another company, or any other juristic person holds shares — the stricter non-owner-managed rules apply.

What “internally compiled” vs “independently compiled” means

Internally compiled means the company's own staff prepare the financial statements. Independently compiled means an external accountant or firm prepares them. This distinction directly affects your obligations at the 100–349 PIS level — internally compiled statements at this level trigger a mandatory audit, while independently compiled statements may only require an independent review.

Who can perform an audit vs an independent review

Audit: Only a registered auditor — a chartered accountant registered with the IRBA (Independent Regulatory Board for Auditors) — may perform a statutory audit.

Independent review for PIS 100+: A registered auditor or a member of an accredited professional body (such as SAICA or SAIPA) may perform the review.

Independent review for PIS below 100: A person qualified as an accounting officer of a close corporation — typically a SAIPA or CIMA professional — may perform the review.

Frequently asked questions

Must I calculate my PIS even if my company is dormant?

Yes. A dormant company with no employees and no turnover will score very low — probably 1 point for a single shareholder — but the calculation must still be done and submitted with your annual return.

My company's PIS was below 100 last year but may cross 100 this year. When does the new obligation apply?

The Public Interest Score is calculated independently each year. If your PIS crosses 100 this year, the obligation applies to this year's financial statements — not retroactively. There is no lookback period.

Does my PIS affect my CIPC annual return?

Yes. Companies with a PIS greater than 350 must submit financial statements in XBRL format to CIPC. Your PIS is also reported as part of the annual return filing process.

What are third-party liabilities — does this include my trade creditors?

Third-party liabilities exclude group loans, shareholder loans, and trade payables to group companies. Trade creditors to unrelated suppliers are included in the calculation. If you owe money to an external bank, a landlord, or an independent supplier — those amounts count toward your PIS.