With so many different tax types, it’s no wonder tax and compliance can be daunting for a new business.
Here’s the basics of some of the more common tax types you might come across :
• Paye ~ a monthly tax deducted from staff or contractors, by a registered employer. This Paye is paid over to SARS by the employer, and then allocated on an IRP5 for employees tax submission.
• Provisional Tax ~ an advanced tax estimate for the current tax year, paid usually in Aug and Feb, and then included in the final assessment.
• Company Income Tax ~ Final Company Tax due on assessment.
• Personal Tax ~ Final Personal Tax due in assessment.
• Dividend Witholding Tax ~ 20% Deduction on dividends declared, deducted before payout and paid to SARS. No recovery on this, it’s a final tax.
• Capital Gains Tax ~ Tax payable on capital gain on sale of an asset, such as investment growth or property sale.
• Small Business Corporation Tax ~ A reduced tax rate for qualifying small businesses.
• Turnover Tax ~ A simplified tax return type for qualifying micro businesses
Any questions on these tax types on your mind today?