Income Tax for Businesses
Do small businesses and their owners pay tax?
Yes. Revenue from tax is the state's main source of income and is levied on taxable income in terms of the Income Tax Act. Income tax is levied on a variety of entities: individuals, companies and trusts. This means that your small business, whether it takes the form of a private company, a sole proprietorship, a close corporation or a partnership, will have to pay income tax.
When do I have to register as a taxpayer?
You must register with your South African Revenue Services (SARS) branch office as soon as you start a business - whether it takes the form of a sole proprietorship, a partnership, a company, a close corporation or something else. SARS will then issue you with an income tax reference number.
You can do this online by downloading the relevant form from the SARS website, or you may find it easier to contact SARS directly. Their contact details are below.
SARS Cape Town Office:
Telephone number: | 021 417 1400 |
Fax number: | 021 413 8900 |
Physical address: | 17 Lower Long Street Cape Town 8076 |
Business hours: | Weekdays 8:00 - 16:00 and Wednesdays 9:00 - 16:00 |
SARS Bellville Office:
Telephone number | 0860 12 12 18 |
Fax number: | (021) 943 8110 |
Physical address: | Teddington Street |
Business hours: | Weekdays 8:00 - 16:00 and Wednesdays 9:00 - 16:00 |
You may have to register for some if not all of the following:
- Provisional Tax
- Employees Tax
- Income Tax
- Value Added Tax
- Trading licences
- Business Name
- Unemployment Insurance Fund(UIF) Workman's Compensation Insurance (WCA) & Industrial Council (IC)
- Trade mark, copyright, patents & designs
Click here for the SARS Small Business website, which will give you all the information you need.
