One of the biggest pains experienced by clients are the legal requirements: –
1.1. Register your Company name – CIPC
Registration of your company’s name with Companies and intellectual Property Commission
(CIPC).
1.2. Register for Taxes SARS
The CIPC company registration automatically registers all businesses with SARS who allocates a relevant
Tax number
Income Tax
All businesses are required to submit annual tax returns which run from 1 March to the end of February
Two provisional tax returns are required to be submitted -one in the first half of the year and the second
by the end of the year
The provisional tax payment system is used for payments. The first two are based on estimates and are
Made at six -monthly intervals. The final payment is made with the final annual tax return.
Company tax can be paid by electronic funds transfer (EFT), bank payments or on SARS e-filing, system
Employees Tax (PAYE
The law requires if you employ one or more employees you have to register for pay as you earn.(PAYE)
Employees are taxed per prescribed rates on their earnings
These deducted amounts must be paid over to SARS monthly.
UIF
Unemployment Insurance benefit fund is a short-term contribution-based benefit and is funded by a
a 2% contribution (1%from employer and 1% from the employee).
These amounts are payable to SARS.
Skills Development Levy (SDL)
SDL is a South African tax to promote learning and development of employees. This is only payable
If your salary bill is more than half a million rand.
Employers pay 1%of total salary bill.
These amounts are paid to SARS.
VAT
Vat is an indirect tax payable by companies where their turnover is more than one million rand.
The current rate is 15% on the supply of goods and services
Once registered companies are required to submit VAT returns monthly or bimonthly.
Department of labour
Businesses are required to register for UIF and SDL with the department.
As a business owner it is your responsibility to ensure that you are registered accordingly.
Bow Bells Accounting Services provide all the above and are eager to assist