Frequently Asked Questions

When do I Register My Business For VAT?

Currently the South African Revenue Services Allow Voluntary Vat Registrations when a Business reaches R50 000.00 Gross Turnover per month.  All Other Businesses By Law Must Register For VAT Once A Gross Revenue (Total Income Before Any Expenses) Exceeds R1 000 000.00. 

When do I Register My Business For PAYE?

PAYE is tax on Employees Earnings.  The Business Owner (or rather the appointed Payroll Service Provider) is responsible for making the correct deductions from an Employees' monthly salary and pay it over to SARS.  Hence, the very instance a Business employs an Individual to work for the Business and agree to pay the Individual a monthly salary, registering the Business for PAYE becomes a consideration.  PAYE is only deductible when an Employee earns a salary higher than the Threshold.  Your Trusted Service Provider will provide you with the correct information when this decision needs to be made. 

When do I Register My Business For UIF?

UIF - Unemployment Insurance Benefit.  By Law Any Worker that Works More Than 24 Hours per month must be registered by the Business Owner for Unemployment Benefits.  One percent (1%) of the Employee's Wages are deducted via a Payroll System and paid over to the Department Of Labour each and every month.  In addition the Business pays and additional equal 1% toward the Fund. 

What is a Tax Clearance Certificate?

The South African Revenue Services will issue a TCC upon request.  The TCC will only be issued once SARS is satisfied that all tax returns are filed up to date and that no tax debt is outstanding. A TCC is a Certificate that states a Business is Fully Tax Compliant.  TCC Certificates are often used when Business Owners apply for contract or tender work.  Without a TCC it will be impossible to apply for the contract or tender work. 

What do my Business pay Income Tax when I already paid Personal Income Tax?

There is a difference between Business Income Tax and Personal Income Tax.  Business Income Tax are paid on the Net Profit of the Business, after all expenses and all operating costs have been paid first.  The Net Profit of a Business is the clean profit a Business made in a given Financial Year.  Personal Income Tax is paid on the salary and all additional drawings (any money that is paid out of the business for personal expenses, leisure, family holidays etc.).  Personal Income is all money in whatever form, earned by the Director / Owner of the Business through the Business.

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