Visit the national COVID-19 Online Resource and News Portal at www.sacoronavirus.co.za or see SARS COVID-19 news items and tax relief measures here.

Small Businesses

What’s New?

Small Business Taxes

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.


Applicable Tax rates

SBC tax rates for financial years ending on any date between 1 April 2021 and 31 March 2022, 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.

Need help?

If you need help to complete the Income Tax Return for Companies ITR14 on eFiling, watch our helpful tutorial video by clicking on the image below.



If you need help to obtain your Tax Compliance Status, watch our helpful tutorial video by clicking on the image below.

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

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-G10 – 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-G17 – Basic Guide to Section 18A Approval

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

LAPD-IT-G26 – Tax Exemption Guide for Public Benefit Organisations in South Africa

LAPD-IT-G27 – Tax 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-G12 – VAT and PAYE NonExecutive Directors FAQs on BGRs 40 and 41

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

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

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