Small Businesses – Taxpayers

What’s New?

Introduction

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.

Webinars

We have regular live webinars on relevant topics. Keep an eye on this page for the schedule:

24 November 2022 – Reminder:  Invitation to a webinar on Dispute Process

To assist taxpayers and traders to fulfil their tax obligations and remain compliant, SARS will host a virtual webinar for taxpayers, traders and SMMEs where we will discuss the dispute process in relation to SARS assessments.

As a taxpayer, you have the right to lodge a dispute when you are not in agreement with an assessment. The aim of this webinar is to educate taxpayers about their rights and obligations relating to the dispute process.

In line with our strategic intent of building and sustaining a culture of voluntary compliance, SARS believes that when taxpayers have clarity and certainty about their tax obligations, they will be in a better position to fulfil their legal obligations.

The following topics will be covered:

  • Definition of the dispute process and the types of disputes that exist.
  • Time frames for different disputes to be lodged
  • What channels are available for the various dispute processes
  • The timelines in which disputes and appeals are finalised.
  • What is Alternative Dispute Resolution (ADR)?
  • Common errors that lead to rejection of disputes and delay the dispute process.

As a valued taxpayer, you are invited to join us at the webinar. You may also extend this invitation to other interested parties

Webinar details:

Theme: Dispute Process

Date: Thursday, 24 November 2022
Time:  17:00 – 19:00
Platforms: Zoom and YouTube

Register in advance for this webinar on the following link:

https://sars-gov-za.zoom.us/webinar/register/WN_tRfBc8_6RDKkVI26c_u8JQ

Webinar ID: 929 4015 7278

Passcode: 676954

After registering, you will receive a confirmation email with information on how to log in to the webinar.

YouTubehttps://youtu.be/uBVDU1qbR9w

To view the presentation click here.

If you have questions about Dispute Process, please email [email protected]

20 October 2022 – Webinar on Employer Interim Reconciliation Declarations Filing Season

SARS hosted a Webinar for employers, where the Employer Interim Declarations (EMP 501) Filing Season was discussed.

The following topics were covered:

  • Submission channels
  • General rules for import file structure
  • Validation rules updates
  • EMP501 reconciliation process

If you’ve missed the webinar, see our YouTube link – https://youtu.be/T8WIzv3cCg8 or 

Click here to view the presentation.

6 October 2022 – Allowable Medical Expenses

If you missed the webinar, see the recording on YouTube –  https://youtu.be/YAAPPDqXb5s.
Click here to view the presentation.

22 September 2022 – Completion of the VAT Return (VAT201) webinar

If you missed the webinar, see the recording on YouTube – https://youtu.be/pJo_W9JNhDk or the presentation here – SMME – VAT Completion of 201 presentation during the webinar.

The following topics were covered:

  • How to complete the VAT 201?
  • Which supplies/services are taxable?
  • What are the requirements of the Tax Invoice?
  • What is the output tax?
  • What is the input tax?
  • How do I calculate the interest and penalties?
  • How do I understand my statement of account?
  • What are the common Audit findings?

30 June 2022 – Value-Added Tax (VAT) webinar for Domestic Reverse Charge Regulations: Valuable Metal

SARS hosted a webinar for Domestic Reverse Charge Regulations: Valuable Metal.  If you have missed the event, see the recorded session here –https://youtu.be/1JzXyDbOSxE

See the VAT DRC presentations:

24 June 2022 – Invite to Youth Month webinar to raise awareness on tax matters

On Friday, 24 June, National Treasury in collaboration with SARS, hosted a Youth Month Webinar to raise awareness on tax matters. 

If you have missed the event, see the recorded session here –  Youth Month 2022 webinar.

9 June 2022 – Webinar on the activation of Registered Representatives

SARS hosted a webinar on 9 June for recognised Controlling Bodies (RCBs) and tax practitioners, on the registered representative function as it applies to taxpayers whose tax affairs are managed by tax practitioners.

The following subjects were discussed:

  • Registered representative functions on eFiling
  • Updating and correcting registered representative information on eFiling
  • Personal information about who can be a registered representative

If you’ve missed the webinar, see our YouTube link – SARS TV Channel.

26 May 2022 – Pay-As-You-Earn (PAYE) webinar for SMMEs

SARS hosted a Small, Medium and Micro Enterprises (SMMEs) taxpayers and traders to a webinar on Thursday, 26 May 2022, from 17:00 – 19:00. The following Pay-As-You-Earn (PAYE) topics were covered:

  • Registration requirements
  • Completion of returns
  • Accurate and timeous filing
  • Reconciliations
  • Payment processes
  • Employment Tax Incentive (ETI)
  • Deregistration.

If you missed the event, you may view it on the SARS TV Channel.

17 February 2022 – Invitation to the Corporate Income Tax and Provisional Taxes compliance webinar for SMMEs

SARS hosted a virtual webinar for Small, Medium and Micro Enterprises (SMMEs), to provide information on Corporate Income Tax (CIT) and Provisional Tax requirements and submission.

The following topics were covered:

  • What is Corporate Income Tax (ITR14) and how to complete the ITR14 form
  • What is Provisional Tax and how to complete the Provisional Tax form (IRP6)
  • Small Business Corporation (SBC) process
  • Audit Process
  • Deregistration.

    If you missed the event, you may view it on the SARS TV Channel

18 November 2021 – SMME: Value-Added-Tax (VAT) Webinar

SARS hosted a virtual webinar for Small, Medium and Micro Enterprises (SMMEs), with information on Value- Added-Tax (VAT). When taxpayers have clarity and certainty about their tax obligations, they will be in a better position to be compliant in their tax matters. The following topics were covered:

  • Registration requirements
  • VAT Filing categories
  • Payments
  • Refunds
  • Deregistration

If you missed the webinar, go to our SARS TV Channel on YouTube https://youtu.be/E8qvYmh3UV0.

For the VAT FAQs asked during the webinar, click here.

21 October 2021 – Turnover Tax
The Taxpayer and Trader Education, and SMME segment hosted a webinar on Turnover Tax for SMMEs to help taxpayers to comply with their tax obligations. If you have missed the event, see the SARS TV Channel.

30 September 2021 – How to apply for a TCS on eFiling
To assist taxpayers, SARS hosted a virtual webinar for Small, Medium and Micro Enterprise (SMMEs). The webinar provided information on the navigation of eFiling and the application for the Tax Compliance Status (TCS) on eFiling. If you have missed it, see the webinar on our SARS TV Channel. For the FAQs asked during the webinar, click here.

23 September 2021 – Education on how to use our system and processes webinar
SARS hosted a webinar on Education for Process to make it easier for taxpayers to meet their tax obligations and, in this way, be tax compliance. The platform will provide an opportunity for SARS to introduce and demonstrate a number of technological tools that were recently designed to assist taxpayers to, at leisure, navigate our enhanced systems. If you have missed it, see the webinar on our SARS TV Channel or see the presentation here.

19 August 2021 – Customs SMME Traders and Travellers Webinar
See our webinar presentation for the SMME Traders and Travellers segment in collaboration with Taxpayer and Traders Education on Customs clearance procedures to help taxpayers to comply with their tax obligations. If you have missed the live webinar, go to our SARS TV YouTube channel or see the content presented showed during the webinar.

29 July 2021 – Trusts & Tax Obligations Webinar
If you have missed the live webinar, go to our SARS TV YouTube channel. See the FAQs discussed during the webinar.

9 July 2021 – Home Office Tax Requirements Webinar
If you have missed the live streaming, it’s now available to watch here or the presentation discussed during the webinar is available here for viewing or downloading.

Step-by-step videos

Keep an eye on our SARS TV Channel for new tutorial videos. Below is a list of our easy, step-by-step videos for some of our offerings:

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

Useful links

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.

What are the applicable Tax rates?

SBC tax rates for financial years ending on any date between 1 April 2022 and 31 March 2023 (coming soon), see the tax rates here.

If you are not an eFiler yet, you are encouraged to register on www.sarsefiling.co.za 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.     If you want to know more about VAT click here.   To learn more about other taxes click here.   You can also call the SARS Contact Centre on 0800 00 SARS (7277) for more information or assistance with a specific query.

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-GEN-02-G01-A-Guide-to-the-Employer-Reconciliation-Process-External-Guide

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 – How 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-Gen-G09 – Tax Guide for Small Businesses

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-G11 – VAT Rulings Process Reference Guide

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

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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