Small Businesses – Taxpayers

What’s New?

  • 4 August 2023 – The PAYE Employer Reconciliation BRS for the 2024 tax year was updated

    The PAYE BRS for Employer Reconciliation version 22 1 2 is now published (previous version was 22 1 1). The validation rules for “Reason for non-deduction of tax” (source code 4150) have changed.

  • 22 June 2023 – CIT changes from 23 June 2023

    The form and system changes will be introduced from 23 June 2023 to the Income Tax Return for Companies (ITR14) and Notice of Assessment for Companies (ITA34C). A limited number of source code descriptions will also be updated. The form is the 2022 ITR14 form, see the prototype here.

    The following are the highlights of a non-exhaustive list of Legal Changes impacting the Income Tax Return for Companies (ITR14), Notice of Assessment for Companies (ITA34C), core systems and source codes:

    • An update to the core systems to accommodate the assessed loss calculations in terms of section 20.
    • An update to the ITR14 to identify paragraph 13(1)(a) and 13(1)(b) deductions for purposes of extending the prescription period on disputes.
    • Removal of the Solidarity Fund Donations (excl. any other Donations) container on the ITR14 to align with the new Section 18A requirements.
    • The Public Benefit Organisations (PBO) number(s) declared on the return when claiming donations will be validated against the SARS’s PBO register for validity.
    • A Share Register will be added to the ITR14 return which will enable the capturing of the classes of shares, and the details of the holders of shares per class of share.
    • The “Taxable Distribution(s) from all Trusts(s)” container will be enhanced to enable the taxpayer to declare the details of each distribution received from a Trust.
    • An update to source code descriptions where applicable.

    SARS gratefully acknowledges compliant taxpayers for filing their tax returns and paying their taxes on time. The support from tax practitioners is appreciated and we would like to remind you of the critical role that practitioners play in bridging the gap between taxpayers and SARS. As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies and tax practitioners to keep abreast of such changes in so that companies continue to meet their tax obligations. See the updated Guide on how to complete the Income Tax Return (ITR14) for Companies.

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

GEN-PT-01-G02 – How to eFile your Provisional Tax Return – 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-G03 – VAT 409 Guide for Fixed Property and Construction

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-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

Last Updated: