Professional Business Income Tax Services
All business is required to register for Business Income Tax with the South African Revenue Service (SARS), this registration is compulsory regardless what type of entity the business is – Private Company (Pty) Ltd; Close Corporation – CC; Trusts; Sole Proprietor, Body Corporate’s
All businesses are also provisional tax payers and are required to submit these returns before the end of August and February every year to SARS.
Even dormant business entities that have not traded or have received any income or revenue are required to submit business tax returns (ITR14).
Since the inception of the Tax Administration Act 2011, it is a requirement that all entities, with the exception of Micro- Business are required to submit with their Business Income Tax returns a full set of Annual Financial Statements for each tax year as supporting documents to this SARS submission
SARS may after submission of your business tax return (ITR14) may select the business for verification and issue a ITR14SD return to confirm and verify the information submitted in ITR14 as a supplementary return
The current company taxation rate is 28% and trusts is 45%
Small business corporations (SBC) do enjoy a bit of tax relief, this subject to certain conditions being met, a reduced taxation rate from 0% – 28% is applied; this rate is dependable on the amount of business’ taxable income for that tax year
The ins-and-outs of VAT
Whether your business is registered as a Close Corporation, Sole Proprietorship or Private Company, there are various tax requirements you have to meet and one of these could be value-added tax (VAT). Here is a broad explanation of what VAT is and how to meet your tax obligations as a small business.
Although this will add to your administration workload, it can also benefit your company in that you’ll be able to claim VAT back on certain VAT claimable expenses.
Registering for VAT
Businesses with a turnover (or a forecasted turnover) of more than R1 million in the past 12-month period (regardless if this is a calendar or tax year) are legally obliged to register as a VAT vendor with SARS. A business can also register voluntarily if turnover in a 12-month period has exceeded R50 000.
Should any business “trade online” the compulsory VAT registering threshold is only R50 000 in the past 12-month period.
For more detailed information and any updates on issues surrounding VAT, claims, exemptions, filing and other tax issues, contact us directly on firstname.lastname@example.org
As tax practitioners, we can also assist taxpayers in receiving a tax clearance certificate, should the business be tax compliant with SARS, as many organisations ask for this prior to dealing with a new service provider.