Frequently Asked Questions:
What are your rates?
Due to the unique requirements of each business rates are drawn up based on the size and needs of each business. However we do have a selection of affordable packages available to you our clients. We advise that you contact us for more detailed information on our rates. It will be best to set up an appointment, as rates for services rendered are dependent on the amount of work that needs to be done.
Do small businesses and their owners have to pay income tax?
Income tax is paid on whatever business structure you select to operate through. Whether it be in the form of a private company, close corporation, partnership, trust or as a sole proprietor. Different rates apply to different business structures used.
When do I have to register as a taxpayer?
As soon as a business is started, be it in the form of a sole proprietor, a partnership, close corporation, or a company. Once we register you for income tax, SARS will issue you with a tax reference number.
What is a tax year?
Individuals and partnerships
The tax year starts on the 1 March and ends on the last day of February of the following year.
Companies and close corporations
Same as above, or the tax year can end on the date that coincides with its financial year.
When is income tax due and payable?
Income tax returns are sent out annually to all registered taxpayers (individuals and businesses) after the end of each tax year. They are usually sent out in the months of March up to July.
The tax returns are to be submitted by a specific date each year. It is usually in the month of July for individuals and September for businesses.
The submission date for company and close corporation tax returns is seven months after the financial year end of the business.
What if my financial records are not ready in time and I cannot meet the deadline?
We will apply for a tax extension for you to move the submission date forward. If this is not done SARS will charge you with interest and penalties. It must be done before the deadline date.
What is provisional tax and do I need to be registered for it?
See information on "DIFFERENT TYPES OF TAXES" on our Information page for an explanation of provisional tax and if it applies to you!
When must I register for provisional tax?
As soon as you start your new business! Companies and close corporations are automatically registered as provisional taxpayers by SARS. You will receive notification of this registration in the post.
When do I pay provisional tax?
The first provisional tax payment is made six months after the commencement of the tax year (end of August) and the second not later than the last day of the tax year (February). The third topping-up payment is voluntary and may be made within six months after the end of the tax year.
What other taxes and levies do I have to register and pay for?
Depending on the amount of turnover and payroll your company is reflecting, you could also be liable to register for other taxes and levies such as VAT, employees’ tax (PAYE and SITE), UIF, SDL and others.
What is employees’ tax?
Employees’ tax consists of SITE and PAYE.
How do I register myself and employees’ for employees’ tax?
Businesses that pay salaries and wages and other remuneration above the tax thresholds must register with SARS for employees’ tax. We will register for you!
You will receive a monthly return (EMP201 form) in the post from SARS. We will complete and submit it for you! This form must be submitted together with the tax deducted within 7 days after the end of the month for which the amount was deducted.
Are directors’ and members’ remuneration subject to employees’ tax?
Yes – both directors of companies and members of close corporations.
Do I have to register for capital gains tax?
This tax arises when a profit is made from the sale of an asset. Taxpayers need not register separately for capital gains tax if they are already registered for income tax.
How much of the net capital gain is taxable?
Individuals – 25% of the net capital gain is included when calculating the tax payable.
Companies, close corporations and trusts – 50% of the net capital gain on the disposal of assets is included in the business' taxable income.
What is VAT?
See information on "DIFFERENT TYPES OF TAXES" on our Information page for more guidance on VAT.
When do I need to register for VAT?
See information on "DIFFERENT TYPES OF TAXES" on our Information page for VAT registrations.
How often do I submit VAT returns?
For most businesses VAT returns are submitted every two months depending on the category you are registered in.