What’s New?
- 26 March 2024 – SMME Connect edition 7
The 7th edition of the SMME Connect comes as most companies have just finalised and submitted their Company Income Tax Returns (ITR14) and their second-period Provisional Returns (IRP6). To these companies, we at SARS extend our heartfelt gratitude on behalf of all South Africans who benefit from the taxes paid. We also want to remind companies that have missed the deadline that they can still complete and submit their returns. This issue offers simple guides to help you meet your tax obligations.
- 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.
SMME Newsletters
- For a complete list of the Connect Newsletters, click 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(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-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 STT Refund – 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
