CART
Company Tax
Company Income Tax (CIT) in South Africa is a key component of the country's tax framework, imposing taxes on the profits of registered companies and close corporations. Administered by the South African Revenue Service (SARS), CIT applies to all businesses operating within the country, including foreign companies with a taxable presence. The tax is levied on the taxable income of companies, which includes revenue earned from regular business activities, capital gains, and other specified sources. CIT plays a critical role in generating revenue for the government, funding public services, and supporting economic development initiatives. Understanding the principles and compliance requirements of CIT is essential for businesses to fulfill their tax obligations accurately and contribute to South Africa's fiscal sustainability.
Company Provisional Tax Submissions
Provisional tax is not a separate tax from income tax. It is designed to help taxpayers settle their income tax in advance (think of it as a pre-payment) to ensure that taxpayers don’t get saddled with a large tax debt on assessment. It is a way for SARS to keep a constant flow of income tax coming in.
Annual Return Submissions
Annual returns are the yearly fees that must be paid over to the Companies Intellectual Property Commission (CIPC) in order to keep your company registered. With InfoDocs you can manage and submit all your annual returns from one place.
Monthly EMP201 Submission
The EMP201 form will enable an employer to adjust a previously submitted declaration or reallocate credits, whether it is for the current period or prior period, for PAYE, SDL and/or UIF.
Annual and Bi-Annual IRP5 Submissions
An employer must issue an employee with an IRP5/IT3(a) where remuneration is paid or has become payable. The IRP5/IT3(a) discloses the total employment remuneration earned for the year of assessment and the total amount of employees' tax deducted or withheld.
VAT Registration.
You must register your business for Value Added Tax (VAT) if the total value of taxable goods or services is more than R1 million in a 12-month period, or is expected to exceed this amount. A business may also register voluntarily if the income earned in the past 12-month period exceeded R50 000
PAYE Registration
Pay-as-you-earn PAYE or Employees' Tax is a tax that is deducted from an employees' income and paid to SARS on a monthly basis. Once a company has employees, it is obliged to register for PAYE. SDL is payable by employers at a rate of 1% of the remuneration (salary) paid to employees.
UIF Registration
You are required by law to register with the Unemployment Insurance Fund (UIF) and contribute towards the fund if you have employed people for more than 24 hours per month.
The monthly contribution for UIF is two percent of your worker's gross salary per month. You must deduct one percent of your worker's gross salary per month and you as the employer contributes one percent.
Company tax clearance Certificates
A Tax Clearance Certificate is more than just a digital breakdown of your compliance status; it provides a business opportunity by showcasing your financial trustworthiness. Issued by the South African Revenue Service (SARS), it serves as proof that a company is up to date with its tax obligations.
Capital Gains Tax Calculations
Capital gains can significantly impact a company’s taxable income, and understanding how to correctly include them in provisional tax calculations is essential for accurate tax planning and compliance.
Tax objections and Appeals
As you r elected Tax Practitioner, we will handle all objections and appeals on your behalf.