Tax/ SARS

Company tax registration

SARS

Company Tax has it advantages… Personal tax is ‘bracketed’, which means that ‘the more you earn, the more you pay’.  There is no way around it.  A Pty Ltd offers a variety of ways in which to distribute the business’ profits. This is a great way for a small business to save money.

All South African companies are required by law to be registered at the South African Revenue Services (SARS) for income tax. We offer the following services:

More info on each service are listed below; followed by the Online Application FormThe first step is to register your company at the CIPC with one of our consultants. You can apply here. After registration a Tax Consultant in your area will assist you with ALL the Tax Services you may require at very reasonable prices. 

Tax Registration:

If a company is registered at CIPC, it needs to be registered for Company Income Tax at SARS.  Most company owners distributes ALL (or most) of the company’s profits to the Directors and other stakeholders in the form of salaries and professional fees during the company’s financial year.  If the company has any profit by October each year your company is liable to pay a provisional tax return and the rest of your company’s annual tax returns by February. Company Tax are currently charged at 28%.

Tax Clearance: 

Before doing business business with large corporations / government institutions they would want to know your company does not have a bad history with SARS.  To prove this, you will be required to give them a Tax Clearance Certificate from SARS. 

VAT Registration: 

Vat registration can be done on a voluntary basis for new companies. It is compulsory when your company expects to do sales of R 1 million or more within a 12 month period. 

Read more about Tax for Small Businesses: Click here. See if you are a SBC and thereby qualify for Tax benefits: Click here

UIF, PAYE AND SDL Registration:

All employers who appoints employees should be UIF (Unemployment Insurance Find), PAYE (Pay As You Earn) and SDL (Skills Development Levy) registered. At each month-end SARS will require you to pay these fees after you have paid your employees’ salaries.

PAYE definition

You, as an employer, will be deducting an employee’s monthly Income Tax from their salary and then pay it directly to SARS. The following additional registration fees are compulsory with PAYE registration:

  • SDL: which SARS uses to promote learning and development in South Africa.
  • UIF: this fund guarantees employees of an income for a certain amount of time in the case of losing their job.

Import / Export Licence:

An Import / Export License is also known as an Importer’s / Exporter’s Customs Code or Customs Registration. In order to receive a customs code, the individual or business has to be registered with South Africa’s Customs (included in this licence).

This license will grant permission to:

  • Clear incoming / outgoing goods at customs.
  • Make foreign transfers.

This license lifetime is permanent.

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