SMALL BUSINESS

Complying with your tax obligations as a small business has been made a lot easier over the past few years.
  • Registering for Turnover Tax. Turnover tax is a simplified tax system for small businesses with a qualifying turnover of not more than R1 million per annum. It is a tax based on the taxable turnover of a business and is available to sole proprietors (individuals), partnerships, close corporations, companies and co-operatives. Turnover tax takes the place of VAT (in the instance that you have not decided to elect back into the VAT system), provisional tax, income tax, capital gains tax, secondary tax on companies (STC) and dividends tax. So qualifying businesses pay a single tax instead of various other taxes. It’s elective – so you choose whether to participate. For Tax Tables see below.
  • Registering your business for VAT
  • Registering for PAYEUIF and SDL
If you are starting out and need to register as a company, you will have to register with the Company and Intellectual Property Commission (CIPC), formerly called CIPRO. In the case where you are already registered as a company and you meet certain qualifying requirements, you may register as a small business corporation (SBC) in order to get additional tax incentives. One of the incentives for SBCs is reduced corporate tax rates, as per below tables.
Applicable Tax rates
SBC tax rates for financial years ending on any date between 1 April 2018 and 31 March 2019 – See changes from last year:
Taxable income (R) ​Rate of tax (R)
0 – 78 750 0%
78 151 – 365 000 7% of taxable income above 78 150
​365 001 – 550 000 20 080 + 21% of taxable income above 365 000
​550 001 and above 58 930 + 28% of taxable income above 550 000
SBC tax rates for financial years ending on any date between 1 April 2017 and 31 March 2018
Taxable income (R) ​Rate of tax (R)
0 – 75 750 0%
75 751 – 365 000 7% of taxable income above 75 750
​365 001 – 550 000 20 248 + 21% of taxable income above 365 000
​550 001 and above 59 098 + 28% of taxable income above 550 000
SBC tax rates for financial years ending on any date between 1 April 2016 and 31 March 2017:
Taxable income (R)​ Rate of Tax (R)​
0 – 75 000 0% of taxable income
75 001 – 365 000 7% of taxable income above 75 000
365 001 – 550 000 20 300 + 21% of taxable income above 365 000
550 001 and above 59 150 + 28% of taxable income above 550 000


SBC tax rates for financial years ending on any date between 1 April 2015 and 31 March 2016:

​Taxable income (R) ​Rate of tax (R)
0 – 73 650​ ​0%
​73 651 – 365 000 ​7% of the amount above 73 650
​365 001 – 550 000 ​20 395 + 21% of the amount above 365 000
​550 001 and above ​59 245 + 28% of the amount above 550 000
Changes at SARS Branches
Companies that choose to submit their Income Tax returns at a SARS branch should also note the following changes introduced on 19 October 2013:
  • Blank ITR14 returns and Supplementary Declaration for Companies or Closed Corporations (IT14SD) will no longer be printed at SARS branches. This is to ensure the security of taxpayer information and also assists us to ‘go green’. Our agents will still help you to submit your returns and declarations electronically. Please note that you need to give us with a valid email or postal address to help us get in touch with you.
  • After the successful submission of your ITR14, an SMS telling you that the Notice of Assessment (ITA34) for the relevant year is available will be sent to the cellphone number. The ITA34 is available on request and will either be emailed or posted to you.

If you are not an eFiler yet, you are encouraged to register on www.sarsefiling.co.za and to complete and submit your ITR14 online. eFiling is free, convenient and secure. You will also be able to access all SARS correspondence to you, on your eFiling profile.

Also note that if you are an employer, you are required to apply to SARS for registration as an employer within 14 days after becoming an employer for purposes of paying employees’ tax which includes PAYE, SDL and UIF where applicable.

CORPORATE INCOME TAX

What’s New?
  • 7 March 2018 – Grace period for the submission of the new IT10B schedule for Controlled Foreign Companies (CFC)

On 26 February 2018, the old IT10B Adobe PDF schedule was replaced with a simplified MS Excel IT10B schedule. The new schedule enables taxpayers to declare all CFC information for years of assessment 2012 onwards in one consolidated schedule that does not exceed the file upload limitation on the SARS eFiling.

In order to accommodate taxpayers who have already prepared their CFC information in the old schedule, SARS will grant all taxpayers a grace period in which the old schedule will be accepted as a valid supporting document for all income tax return submissions prior to 1 June 2018. The limitation of uploading only the first 10 schedules as supporting documents to the income tax return, in cases where there are more than 10 CFCs, will remain applicable in respect of the old schedule. SARS, however, urges taxpayers who have not yet started preparing their CFC information to make use of the simplified MS Excel IT10B schedule.

From 1 June 2018 all taxpayers who, together with any connected person, held at least 10% participation rights in any CFC must complete the CFC information in the new IT10B schedule. The new IT10B schedule must be uploaded as a supporting document in respect of CFCs for all income tax returns submitted from 1 June 2018 onwards.

  • 26 February 2018 – Enhancements to the Income Tax Return for Companies (ITR14)
SARS implemented several changes to the Income Tax Return for Companies on 26 February 2018. Read more here.
What is Corporate Income Tax?

Corporate Income Tax (CIT) is a tax imposed on companies resident in the Republic of South Africa (i.e. incorporated under the laws of, or which are effectively managed in, the Republic, and which derive income from within or outside the Republic. Non-resident companies which operate through a branch or which have a permanent establishment within the Republic are subject to tax on all income from a source within the Republic.

Who is it for?

CIT is applicable (but not limited) to the following companies which are liable under the Income Tax Act, 1962 for the payment of tax on all income received by or accrued to them within a financial year:

  • Listed public companies
  • Unlisted public companies
  • Private Companies
  • Close Corporations
  • Co-operatives
  • Collective Investment Schemes
  • Small Business Corporation (s12E)
  • Body Corporates
  • Share Block Companies
  • Dormant Companies
  • Public Benefit Companies.
What steps must I take?
        • Register as taxpayer

Every business liable to taxation, under the Income Tax Act, 1962, is required to register with SARS as a taxpayer.  You can register once for all different tax types using the

client information systemTop Tip: You must make sure your business details are up to date before you submit your ITR14. So visit our keeping my business details up to date to find out how to do this.

        • Submit annual tax return

Every registered taxpayer is required to submit a return of income twelve months after the end of the financial year, of such taxpayer, in the prescribed form.  Returns can be submitted electronically via  e-filing or manually at a

SARS branch 

    • where the taxpayer is registered.
    • Submit provisional tax returns

In addition to annual returns, every company is required to submit provisional tax returns. The first of these returns is required to be submitted six months from the start of the year, and the second at year end, and must contain an estimate of the total taxable income earned or to be earned for that period. Payment of the tax must accompany the return. A third “top-up” payment may be made six months after year-end.

Top Tip: When submitting your return you will need to give the SIC code for your business. To find out your relevant code please click here.

When should CIT be paid?
Provisional Tax
  • First payment – within six months from the beginning of the year of assessment
  • Second payment – on or before the last day of the year of assessment
  • Third payment – seven months after the year of assessment for taxpayers with February year-end and six months after year of assessment for all other cases.
Tax on Assessment
Payment of tax upon an assessment notice issued by SARS must be done within the period specified in such notice.
Corporate Income Tax is payable at a rate of 28%.
How should CIT be paid?
Payments can be made using the following options:
  • Online Banking
  • Electronic funds transfer
  • Bank payments
  • eFiling
  • Swift payment method (applicable only to foreign payments).
Note: Please refer to the guide on SARS Payment Rules for more information on the above methods of payment.