Small Businesses – Taxpayers

What’s New?

  • 26 January 2024 – Provisional Tax – Solar energy tax credit

    In order to encourage households to invest in clean electricity generation capacity as soon as possible, a tax credit has been introduced under section 6C of the Income Tax Act for a limited time period.  Section 6C is deemed to have come into operation on 1 March 2023 and applies in respect of years of assessment commencing on or after this date. Furthermore, this section is only available for a period of one year, that is, from 1 March 2023 to 29 February 2024.

    This tax credit applies to any natural person who is liable for personal income tax and who invests in qualifying solar photovoltaic panels (solar PV panels).

    Under this section, a natural person may be eligible for the tax credit on the cost that has been actually incurred in respect of the acquisition of qualifying solar PV panels. The cost relating to other components of a complete solar energy system such as inverters, batteries and supporting structures do not qualify for the tax credit.

    Since the intention is to encourage natural persons to invest in renewable energy, the carrying on of a trade is not a requirement to be eligible to claim this tax credit.

    The Provisional Tax Return (IRP6) has been updated with a “Solar energy tax credit” field to enable provisional taxpayers to take the tax credit into account in determining provisional tax payable for the second provisional period of the 2024 year of assessment.

    For more information, see the updated guide: GEN-PT-01-G01 – Guide for Provisional Tax – External Guide.

  • 9 October 2023 – SMME Connect edition 6
    This edition of SMME Connect reflects on our strategic objectives to provide clarity and certainty for taxpayers to comply with their tax obligations, and to use data to enhance integrity, derive insights, and improve outcomes. We are educating taxpayers and traders through outreach engagements, collaboration with other public stakeholders, and roadshows to gain first-hand understanding of your challenges and needs. Also, read up on the Employer Interim Reconciliation Declaration (EMP501), which is open from 18 September to 31 October 2023.  Click here to read more.

SMME Newsletters

Read the latest SMME Connect Newsletter. See the previous SMME Connect Newsletters here.

About Us

This page is dedicated to Small Medium and Micro Enterprises (SMME) Taxpayers.

The SMME Taxpayers is a Division in SARS that represents the needs and interests of this sub-segment in the tax environment. This will be done through:

  • Providing Clarity and Certainty to Taxpayers
  • Making it easy for Taxpayers
  • Detecting and deterring Taxpayers who do not comply
  • Working with and through Stakeholders to improve the tax ecosystem.

The purpose of this page is to share current and upcoming work being done to achieve the above mandates. If you are a SMME Trader or Traveller, see our dedicated SMME Traders and Travellers webpage here.

See our SMME video ‘A guide on small business taxes in South Africa’ here.

Quick Tools

Mobile Tax Units

See our schedule for the Mobile Tax Units per region. The Mobile Tax Units webpage will be updated on a regular basis. To see the services Mobile Tax Units offer and the documents you need to take with you, click here.

Upcoming education sessions

See our schedule for the upcoming education sessions per region

How to comply as a Small Business?

Complying with your tax obligations as a small business has been made a lot easier over the past few years. Read below for more information:

  • 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. Please note that Companies are first required to register with the (CIPC) offices before registering with SARS for an Income Tax reference number, click here for CIPC. Once a taxpayer registered with CIPC, SARS will automatically generate an Income Tax reference number. Taxpayer must then register on eFiling to transact electronically.
  • See Registering on eFiling and services available online.
  • How to obtain your Tax Clearance Information: As a Small, Micro or Medium Enterprise (SMME), at some point or another you will be required to provide / confirm / share your Tax Clearance information with another entity. This could be to apply for a tender, new contract, good standing or in respect of Foreign Investment.  
  • 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.
  • 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 a reduced corporate tax rate. Click here to see reduced tax rates for small businesses.

Related Documents

ASPOA – Authority on Special Power of Attorney by Tax Practitioner – External Form

CRA01 – Confirmation of Residential or Business Address for Online Completion – External Form

EI2D-Small-Business-Funding-Entity-Written-Undertaking-External-Form

EMP-REG-03-G01 – Guide for completion of Employer Registration application – External Guide

EMP128 – Confirmation of Partnership – External Form

GEN-ELEC-04-G01 – Guide for completing the Value Added Tax VAT201 Declaration – External Guide

GEN-ELEC-08-G01-Guide-to-the-Tax-Compliance-Status-functionality-on-eFiling-External-Guide

GEN-PT-01-G01 – Guide for Provisional Tax – External Guide

GEN-PT-01-G02 – How to eFile your Provisional Tax Return – External Guide

IT-ELEC-03-G01-Guide-to-complete-the-Company-Income-Tax-Return-ITR14-eFiling-External-Guide

IT180 – Declaration by Employer to Claim Deduction against Learnerships – External Form

IT3(b) – Certificate of Income Investments Property Rights and Royalties – External Form

IT3(c) – Certificate of Income re Disposal of Unit Trusts or other Financial Instruments – External Form

IT3(e) – Return of Purchases Sales or Shipments – External Form

IT44 – Extract of Income – External Form

IT77C – Application for registration Company – External form

LAPD-IT-G12 – Guide to the Urban Development Zone Allowance

LAPD-IT-G16 – Basic Guide to Income Tax for Public Benefit Organisations

LAPD-IT-G23 – Guide on the Taxation of Franchisors and Franchisees

LAPD-IT-G27 – Tax Exemption Guide for Recreational Clubs

LAPD-IT-G30 – Guide on venture capital companies

LAPD-STC-G01 – Comprehensive Guide to Secondary Tax on Companies

LAPD-TAdm-G02 – Comprehensive Guide to Advance Tax Rulings

LAPD-TAdm-G06 – Quick Guide on Alternative Dispute Resolution

LAPD-TAdm-G13 – Reportable Arrangement Guide

LAPD-TT-G01 – Tax Guide for Micro Businesses

LAPD-VAT-G01 – VAT 403 Vendors and Employers Trade Classification Guide

LAPD-VAT-G04 – VAT 411 Guide for Entertainment Accommodation and Catering

LAPD-VAT-G05 – VAT 412 Guide for Share Block Schemes

LAPD-VAT-G06 – VAT 413 Guide for Estates

LAPD-VAT-G07 – VAT 414 Guide for Associations not for Gain and Welfare Organisations

LAPD-VAT-G09 – VAT 420 Guide for Motor Dealers

LAPD-VAT-G10 – VAT 421 Guide for Short Term Insurance

LAPD-VAT-G17 – VAT Reference Guide for Foreign Donor Funded Projects

Legal-Pub-Guide-Gen09 – Tax Guide for Small Businesses

Legal-Pub-Guide-IT17 – Basic Guide to Section 18A Approval

Legal-Pub-Guide-IT26 – Tax Exemption Guide for Public Benefit Organisations in South Africa

Legal-Pub-Guide-IT36 – Guide to Section 18A Approval of a Department in the National Provincial and Local Sphere of Government

Legal-Pub-Guide-VAT03 – VAT 409 Guide for Fixed Property and Construction

Legal-Pub-Guide-VAT19 – VAT Rulings Process Reference Guide

Legal-Pub-Guide-VAT20 – VAT section 72 decisions process reference guide

MPR1 – Mineral and Petroleum Resources Royalty Application Form – External Form

RA01 – Reporting Reportable Arrangements – External Form

RC02 – Application for Certificate of Residence for Persons other than Individuals – External Form

REV16 – Claim for Refund out of Revenue – External Form

SPPOA – Special Power of Attorney – External Form

TPPOA – Special Power of Attorney to Tax Practitioner – External Form

VAT215 – Record in respect of Imported Services – External Form

WTR01 – Return for Withholding Tax on Royalties – External Form

Table of Contents

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