Sars Registration – Midrand Tax Accountants – Fixonate.
Do you own a small business and don’t know where to start when it comes to the various sars registration tax types?
In this article, we are going to discuss the various tax type registrations,
Which one applies to your business and what are the various registration requirements for each type.
By the end of this article, you should have an idea, which tax types you should be registering for if you are running a small business and how much you are expected to pay.
We have also included an online form which you can fill in to tell us a few details about your SARS Registration requirements, we will be in a position to advise and quote you accordingly should you prefer to use our professional services and advice for the various income tax registrations.
The different SARS Registration Tax Types
- Company Income Tax (CIT)
- Personal Income Tax also known as individual tax
- Paye ( Pay As You Earn)
- UIF ( Unemployment Insurance Fund)
- SDL ( Skills Development Levy)
- Value Added Tax
- Provisional Tax
- Transfer Duty
- Customs & Excise Tax
Company Income Tax
Company income tax is compulsory and levied on all income earned by a company. If your company is already registered at CIPC, then you should already be having an income tax number. If for some peculiar reason, your company is not registered, a visit to SARS should solve the problem.
Company income tax is payable from the 1 March each year having completed a period of 12 months. It is levied at a rate of 28% of your taxable profits.
Value Added Tax
Value added Tax Registration becomes compulsory if sales of goods or services made by your company will exceed R1 Million per annum. For example, if you get a government contract in excess of R1 Million, you will be required to register for this tax type. It is now levied at 15%. The requirements for VAT registration are too stringent and the need for an expert might be necessary.
PAYE (Pay As You Earn).
Pay As You Earn registration becomes compulsory as soon as your company enters into an employment contract with anyone who earns more than R6,510 per month (For the 2018 year of assessment). It is payable every month based on the tax tables. Click here to view the current table.
SDL Also Known as Skills Development Levy
SDL becomes compulsory when the total estimated wage bill per annum is most likely to exceed R500,000. The amount payable is 1% of your total monthly wage bill and it is payable every month.
UIF (The Unemployment Insurance Fund)
UIF registration becomes compulsory as soon as you employ anyone for a period of more than 24 hours in a month. This tax is set at 2% of which 1% must be a contribution by the employer. Registration for UIF can either be affected at the department of labour or SARS.
Provisional tax as its name suggests is a provisional tax paid during the year to reduce the lump sum burden at the end of the tax year. Think of it as an advance tax payment which will be used to reduce your tax burden at the end of the year. Provisional tax is compulsory if you receive any income other than a salary. Therefore, if you are a business owner, it is compulsory to register for provisional tax.
Custom & Excise Duty
If you are in the business of importing and exporting, cross-border transactions etc, only then should you be worried about registering your business for customs & excise duty, and besides, this tax is levied at the airports and borders when you bring in or export goods to foreign countries.
Capital Gain Tax
Capital Gains Tax is only applicable to a massive sale of capital assets such as Land, Houses, construction equipment. Even then, the exemptions are still huge. You shouldn’t worry about registering for this tax type until your company is in the process of transacting with such capital assets. And besides, these transactions are usually handled by attorneys and they will take care of your capital gains tax instead of you worrying about registering for it.
As you can see, from this article you should rather be concerned about the first six tax types.
If you need assistance with income tax registrations, please click here to fill in an obligation free online form about your company tax requirements, based on the information given, we will be able to quote you on your tax registration requirements.