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When starting up any form of business, it is imperative to ensure that you conform
to all government regulations and processes. 
This is one ruling you don’t want to fall short on, as it can be to the detriment of all the hard work that you put into your business.  Tax is one of those bylaws.  This is a mandatory directive that all businesses
must register for and contribute to, if so calculated by this institution.  Small businesses are no exception.  They need to ensure they are up to date with their tax obligations at any given time, to avoid any harsh penalties or even worse,
closure.

In all cases, whether you are a self-employed individual or business, it is compulsory to register your company with SARS (South African Revenue Services). The most convenient way to do this is through the eFiling process.  This is an online procedure that can be accessed by visiting www.sars.gov.za and clicking on the eFiling tab and then completing the Registration Now forms. 

Once all your information has been updated, you can register for VAT, PAYE, etc without actually visiting the SARS offices, which will help you avoid those long queues and squandered time. 

Accurate and good record-keeping matters the most in running a smooth operation.  This will assist you in having quick access
to your businesses’ correct records when eFiling your application.

Fortunately for small business owners, SARS offers a number of tax incentives. These include deductible expenses, rebates, and allowances. By taking advantage of these incentives, small businesses can reduce their tax liability and improve their bottom line.  Here we explain two
such incentives, the Turnover Tax (TOT) and Small Business Corporation (SBC).

1.    Turnover Tax (TOT)

This section offers small businesses with an annual turnover of R1 million or less, an opportunity to reduce and simplify their tax compliance and administration burden.  For qualifying businesses, the TOT will offer them a single tax-paying system instead of adhering to the various payment
sections of Income Tax, VAT, Provisional Tax, Capital Gaines Tax, and Dividends Tax.  This process will really help streamline a small business tax process, so it is well worth investigating this route.

2.    Small Business Corporation
(SBC)

The reduced tax rate for small businesses with an annual turnover of up to R20million will be automatically applied, once all the requirements on the IT14 forms are completed and an SBC status is approved and allocated.  This is an automatic process once this form has been completed, so it is not necessary to specifically apply for these reduced tax rates.

These are just two of several other SARS incentives to encourage registration and legally keep your business above board. 
Remember, no matter how small or large your business is, Tax is a mandatory responsibility that all businesses must comply too.     

Contact us here at Experity Accounting Services by email at info@experity.co.za for any queries and advice on registering your business and its tax obligations and options.  Our team is ready to offer you sound experienced guidance and services, so don’t hesitate to contact us.  We will take care of all these compulsory details while you get on with focusing on building your business.