6th Jul, 2020
As soon as a taxpayer commences a business, whether as a sole proprietor, a partner in a partnership or as a shareholder in a company, then you need to register at your SARS branch to get an income tax reference number. You must register within 60 days after you have started your business by completing an IT77 form, which can get from your SARS branch or below.
The nature of your business truly affects what you pay in tax. There are are many different forms of business. We have described the legal form of each and the basic advantages and disadvantages of each. Sole Proprietorship Partnerships Private Companies Close Corporations (CC) Although no new CCs can now be formed.
The other types of business include Small business corporation (SBC) Micro business Personal service giver Labour broker Independent contractor Small, medium and micro enterprises (SMMEs) Information on SMMEs, details of various assistance schemes, rebates, incentives and information the as how to start a business, types of business entities and requirements of registration of a business entity, can be obtained from depending on Department of Trade and Industry or on its website www.dti.gov.za.
Top Tip: Some businesses deal with a Tax Practitioner for their tax matters. Only deal with registered and reputable tax practitioners. You can check if theyre registered with an accredited professional body and youve got better protection if they belong to a registered practitioner association.