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Planning to start a business? Get your ducks in a row for 2010 tax
Get your tax ducks in a row with acknowledged tax expert Ron Warren, who highlights some tax tips and what the SARS requirements are when starting a business
The famous saying goes: “The only thing in life that’s certain is death and taxes.” If you are starting a new business it is a good idea to get your tax ducks in a row from the start. Acknowledged tax expert Ron Warren, who has 50 years experience in tax and payroll, highlights some tax tips and what the SARS requirements are when starting a business.
Registrations
There are several registrations that need to be done as a small business including: registering as an employer to get a PAYE tax reference number (if you are going to have paid employees); registering with the UIF (if you are going to have paid employees); registering for Skills Development Levy with SARS if your salary payroll is likely to exceed R500 000 a year and registering as a VAT vendor with SARS if your gross turnover is likely to exceed R1 million a year.
Although not legally necessary, it is also a good idea to register with sarsefiling.gov.za for the purpose of making your EMP 201, VAT and provisional/annual tax returns to SARS. It is very easy to register, and very easy to use and much better than filling out paper returns.
Statutory SARS tax requirements
PAYE - Deduct employees’ tax (PAYE) from remuneration paid to employees, and pay the amount deducted to SARS monthly using an EMP 201 form.
VAT - If you are registered for VAT, you would also have to make VAT returns and payments to SARS, normally every two months.
Salaries - You must keep a record of all remuneration paid to your staff and the employees’ tax deducted. This is best achieved by keeping a copy of the pay slips issued to your staff.
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