Frequently Asked Questions about South African Tax for Small Businesses
Starting and managing a small business comes with various tax responsibilities, and we know it can sometimes be confusing. Our FAQ section is here to provide clear, straightforward answers to the most common tax-related questions. Whether you need help with registration, filing returns, or understanding different tax types, you’ll find helpful information here to keep your business compliant and running smoothly. If you need further assistance, don’t hesitate to consult a tax professional or visit the SARS website for the latest updates.
What are some examples of the deductions or allowances that a business can claim against their income tax?
Businesses can claim various deductions and allowances against their taxable income, including wear and tear (depreciation) on assets like machinery and equipment, allowances on expenditure related to intellectual property (patents, … More
What is Capital Gains Tax (CGT) and how is it calculated?
Capital Gains Tax (CGT) is a tax on the profit made when selling an asset. It applies to the disposal or deemed disposal of assets by South African residents (anywhere … More
What is the difference between a Small Business Corporation (SBC) and a Micro Business in terms of taxation?
A Small Business Corporation (SBC) is a specific type of company that meets certain requirements and qualifies for additional tax incentives like a reduced corporate tax rate. To register as … More
What is Turnover Tax and who is eligible to use it?
Turnover tax is a simplified tax system designed for small businesses in South Africa. It’s an elective tax, meaning businesses can choose to participate if they meet the requirements. Eligibility … More
What should a business do regarding imports and exports in relation to customs duties and VAT?
Businesses involved in imports and exports must register with SARS as an importer or exporter. They need to ensure that goods are properly declared on the correct tariff classification and … More
When does a business need to register for Value Added Tax (VAT), and what are the different types of VAT rates?
A business is required to register for VAT if its total taxable supplies (turnover) exceed R1 million in any consecutive 12-month period or will exceed this amount in the next … More
