Frequently Asked Questions
I want to start my own business. What type of business should I set up or register?
See our free article "Do you want to start your own business?"
What are your rates?
Due to the ethics of the profession, rates cannot be advertised. However we do have a selection of affordable packages available to you our clients.
We advise that you phone our office for more detailed info on prices. It will be best to set up an appointment, as the prices for services rendered are dependent on the amount of work that needs to be done.
How much is it to register a CC?
See our packages for more details.
Do I have to appoint an Accounting Officer (Accountant)?
A Close Corporation is required by law to appoint an accounting officer. If you own a CC and need an accounting officer please contact our office for further assistance.
Do I have to appoint an auditor?
A company is required by law to appoint an auditor who will audit and sign off its annual financial statements. Normally the auditor or the accounting officer will help determine the taxable income and the amount of tax to be paid. See our packages for more details.
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.
See our free articles and downloads on the different taxes applicable to different types of business structures, or see our free article "Do you want to start your own business?".
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 are the tax rates applicable for businesses and their owners?
See our downloads for tax tables and tax rates.
Does my business qualify as a small business corporation?
The following are the requirements:
Shareholders and members must be natural persons and must hold the entire shareholding during the entire year of assessment.
The gross income for the year of assessment may not exceed R14 million.
Not more than 20% of the gross income (receipts, accruals and all capital gains) of the company or close corporation must consist collectively of investment income and income from the rendering of a personal service.
Personal service means:
Any service in the field of accounting, actuarial science, architecture, auctioneering, auditing, broadcasting, brokering, commercial arts, consulting, draftsmanship, education, engineering, entertainment, health, information technology, journalism, law, management, performing arts, real estate, research, secretarial services, sport, surveying, translation, valuation or veterinary science.
Which is performed personally by any person who holds an interest (ie. member of close corporation or shareholder of company) in the company or close corporation referred to in the definition of small business corporation.
Investment income means:
Income in the form of dividends, royalties, rental, annuities, or similar nature. Income in the form of proceeds derived from investment or trading in financial instruments, marketable securities or immovable property.
Shareholders or members may not at any time during the year of assessment hold any shares or interest in any other company or close corporation (other than a listed company, unit trust, share block company, or sectional title body corporate).
The company or close corporation must not be an employment company.
See our downloads for tax tables and tax rates applicable for small business corporations.
What is provisional tax and do I need to be registered for it?
See our free articles and downloads 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?
See our free articels and downloads for payment dates for provisional tax.
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.
See our free articles and downloads for more details on the above mentioned possible taxes you might need to register for.
What is employees’ tax?
Employees’ tax consists of SITE and PAYE.
See our free articles and downloads for more detailed guidance.
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.
Is directors’ and members’ remuneration subject to employees’ tax?
Yes – both directors of companies and members of close corporations.
I am the director of a company or member of a close corporation – I do not draw a monthly fixed salary – how do I work out my employees’ tax?
Directors of companies and members of close corporations often finance their living expenses out of their loan accounts during the financial year. Their remuneration is usually only determined at the end of the financial year.
No tax can be withheld if no monthly remuneration is being paid. In this case a formula is used to determine the deemed monthly remuneration on which the company will then pay monthly employees’ tax.
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 our advice and downloads for more guidance on VAT.
When do I need to register for VAT?
See our free articles and downloads 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.
What has happened to CCs?
Read this article about the new legislation about CCs
