The business is in compliance with all legal requirements for tax (registration and payment)

What does this mean?

  • Tax is paid to the South African Revenue Services (SARS). It is legally required of every company and individual to register for tax and have a tax number.
  • Companies are taxed on profit they make and individuals are taxed on any income they earn so even if you are a sole trader, and have not formally registered a separate business entity, you will be required to have a tax number – in this case, you will need to register as provisional taxpayer. If you are not registered as an individual tax payer, you will need to do this in order to obtain a tax number.
  • All companies with an annual turnover of more than R1 million must register and pay VAT.
  • Smaller companies also have the option to voluntarily register for VAT.

What do I do?

  • The SARS website is very informative and easy to navigate. Go and have a look at: http://www.sars.gov.za/
  • The easiest way to submit your tax is via eFiling.  Go to http://www.sarsefiling.co.za to register and submit tax returns.  Tax on profit need only be declared once a year after your financial year-end has been finalized.
  • VAT returns must be submitted to SARS accompanied by a VAT 201 form on a bi-monthly basis by the 25th of each second month. This can also be done via eFiling.
  • If you are not registered for eFiling, submissions will need to be made at your local SARS branch.
  • It is highly recommended that you use a competent in-house finance person or an external accounting firm to assist you with your tax requirements.

Guide for Employers in Respect of Employees' Tax