Yes. If you earn taxable income, you must register with South African Revenue Service (SARS). This applies to individuals, businesses, freelancers and companies.
Individual tax returns are usually due between July and November, depending on whether you submit online or manually. Provisional taxpayers have different deadlines.
Provisional tax applies to individuals and entities earning income other than a salary (e.g. business owners, freelancers, investors). It’s paid twice a year, with a possible third top-up payment.
You must register for VAT if your turnover exceeds R1 million in any 12-month period. Voluntary registration is possible from R50,000 turnover.
PAYE (Pay As You Earn) is tax deducted from employees’ salaries by the employer and paid monthly to SARS.
Allowable deductions include business expenses incurred in earning income, such as office costs, professional fees, travel (where applicable), and home office expenses if you qualify.
An accountant handles financial records and reporting, while a registered tax practitioner is authorised to submit returns and deal directly with SARS on your behalf.
Late submissions can result in administrative penalties, interest, and possible audits. Penalties increase the longer the return remains outstanding.
Not always. It depends on the company’s public interest score and structure. Many small businesses only require an independent review or compilation.
SARS requires records to be kept for at least 5 years from the date of submission.
These are official SARS documents related to employee earnings (IRP5), employer declarations (IRP30), and tax assessments (ITA34).
Yes. SARS may request supporting documents at any time to verify the accuracy of submitted information.
A tax clearance certificate confirms your tax affairs are in order. It’s often required for tenders, contracts, emigration or business funding.
Yes, if part of your home is used exclusively and regularly for business purposes and you meet SARS’ criteria.
Through tax planning, correct structuring, allowable deductions, and compliance, an accountant ensures you pay no more tax than legally required.
