Question 1

Do I need to register for tax in South Africa?

Accepted Answer

Yes. If you earn taxable income, you must register with South African Revenue Service (SARS). This applies to individuals, businesses, freelancers and companies.

Question 2

When do I need to submit my tax return?

Accepted Answer

Individual tax returns are usually due between July and November, depending on whether you submit online or manually. Provisional taxpayers have different deadlines.

Question 3

What is provisional tax and who must pay it?

Accepted Answer

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.

Question 4

When must a business register for VAT?

Accepted Answer

You must register for VAT if your turnover exceeds R1 million in any 12-month period. Voluntary registration is possible from R50,000 turnover.

Question 5

What is PAYE and when is it deducted?

Accepted Answer

PAYE (Pay As You Earn) is tax deducted from employees’ salaries by the employer and paid monthly to SARS.

Question 6

What expenses can I deduct from my tax?

Accepted Answer

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.

Question 7

What is the difference between an accountant and a tax practitioner?

Accepted Answer

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.

Question 8

What happens if I submit my tax return late?

Accepted Answer

Late submissions can result in administrative penalties, interest, and possible audits. Penalties increase the longer the return remains outstanding.

Question 9

Do small businesses need audited financial statements?

Accepted Answer

Not always. It depends on the company’s public interest score and structure. Many small businesses only require an independent review or compilation.

Question 10

How long must I keep my financial records?

Accepted Answer

SARS requires records to be kept for at least 5 years from the date of submission.

Question 11

What is an IRP30, IRP5, or ITA34?

Accepted Answer

These are official SARS documents related to employee earnings (IRP5), employer declarations (IRP30), and tax assessments (ITA34).

Question 12

Can SARS audit my business or personal tax?

Accepted Answer

Yes. SARS may request supporting documents at any time to verify the accuracy of submitted information.

Question 13

What is a tax clearance certificate and why do I need one?

Accepted Answer

A tax clearance certificate confirms your tax affairs are in order. It’s often required for tenders, contracts, emigration or business funding.

Question 14

Can I claim a home office deduction?

Accepted Answer

Yes, if part of your home is used exclusively and regularly for business purposes and you meet SARS’ criteria.

Question 15

How can an accountant help me save on tax legally?

Accepted Answer

Through tax planning, correct structuring, allowable deductions, and compliance, an accountant ensures you pay no more tax than legally required.

Frequently Asked Questions