Welcome to the webpage for Small Business. Complying with your tax obligations as a small business has been made a lot easier over the past few years. Click on the following links to find information that deals with:
- Registering for Turnover Tax. Turnover tax is a simplified tax system for small businesses with a qualifying turnover of not more than R1 million per annum. It is a tax based on the taxable turnover of a business and is available to sole proprietors (individuals), partnerships, close corporations, companies and co-operatives. Turnover tax takes the place of VAT (in the instance that you have not decided to elect back into the VAT system), provisional tax, income tax, capital gains tax, secondary tax on companies (STC) and dividends tax. So qualifying businesses pay a single tax instead of various other taxes. It’s elective – so you choose whether to participate. For Tax Tables see below.
- Registering your business for VAT
- Registering for PAYE, UIF and SDL
If you are starting out and need to register as a company, you will have to contact the Company and Intellectual Property Commission (CIPC)
, formerly called CIPRO. In the case where you are already registered as a company and you meet certain qualifying requirements, you may register as a small business corporation (SBC)
in order to get additional tax incentives. One of the incentives for SBCs is reduced corporate tax rates, as per below tables.
See our Small Business tax kit offerings to assist you with your business:
Applicable Tax rates
SBC tax rates for financial years ending on any date between 1 April 2016 and 31 March 2017:
|0 – 75 000
||0% of taxable income|
|75 001 – 365 000
||7% of taxable income above 75 000|
|365 001 – 550 000
||20 300 + 21% of taxable income above 365 000|
|550 001 and above
||59 150 + 28% of taxable income above 550 000|
SBC tax rates for financial years ending on any date between 1 April 2015 and 31 March 2016:
|0 - 73 650
|73 651 - 365 000
||7% of the amount above 73 650|
|365 001 - 550 000
||20 395 + 21% of the amount above 365 000|
|550 001 and above
||59 245 + 28% of the amount above 550 000|
Changes at SARS Branches
Companies that choose to submit their Income Tax returns at a SARS branch should also note the following changes introduced on 19 October 2013:
- Blank ITR14 returns and Supplementary Declaration for Companies or Closed Corporations (IT14SD) will no longer be printed at SARS branches. This is to ensure the security of taxpayer information and also assists us to 'go green'. Our agents will still help you to submit your returns and declarations electronically. Please note that you need to give us with a valid email or postal address to help us get in touch with you.
- After the successful submission of your ITR14, an SMS telling you that the Notice of Assessment (ITA34) for the relevant year is available will be sent to the cellphone number. The ITA34 is available on request and will either be emailed or posted to you.
If you are not an eFiler yet, you are encouraged to register on www.sarsefiling.co.za
and to complete and submit your ITR14 online. eFiling is free, convenient and secure. You will also be able to access all SARS correspondence to you, on your eFiling profile.
Also note that if you are an employer, you are required to apply to SARS for registration as an employer within 14 days after becoming an employer for purposes of paying employees’ tax which includes PAYE, SDL and UIF where applicable.
Remember if you need any assistance you can visit a SARS branch
or call the SARS Contact
Centre on 0800 00 SARS (7277)
If you want to know more about VAT, visit our VAT section