FAQ

Frequently Asked Questions

I am a start-up/small business, when am I required to register for VAT?

Your business’s taxable turnover exceeds R1 million in any consecutive 12 month period which is a compulsory registration..
You voluntarily register if your turnover is between R50,000 and R1 million.
You import goods or provide certain services that require VAT registration regardless of turnover.

As an individual, when should I submit my personal income tax?

As an individual in South Africa, you should submit your personal income tax return (ITR12) during the annual SARS tax season, which typically runs from July to October each year.

As a start-up/small business when should I register and submit a income tax return?

When should my company register?

You’ve registered a company with CIPC, it is automatically registered for income tax with SARS, but you must activate your SARS eFiling profile.
You are a sole proprietor and your business starts trading or earns income, you must register yourself as a taxpayer if not already registered.
You expect to earn more than R30,000 in profit per year.

When should my small business submit?

Company:

Within 12 months after your financial year-end

Sole Proprietor:

During SARS tax season (usually July to October each year)

As a start-up/small business when should I submit my VAT return?

Category A: Every 2 months (odd months) if turnover is less than R30 million

Category B: Every 2 months (even months) for Most small to medium vendors

Category C: Monthly if turnover is more than R30 million

As a start-up/small business why and when should I compile Annual Financial Statements?

Why?

For tax returns (Company tax return: ITR14)
For CIPC annual return
To apply for funding, loans, or grants
For B-BBEE verification (if applicable)
To help with business planning and decision-making

When?

Pty (Ltd) - 6 months after year-end
Trusts - Annually and aligned with tax trust return

As a start-up/small business when should I pay SARS PAYE and submit a EMP201?

PAYE must be submitted and paid monthly by the 7th of the following month, or the next business day if the 7th falls on a weekend or public holiday.

As a start-up/small business when should I submit my annual return on CIPC?

For companies, the return must be submitted within 30 business days after the day following your incorporation anniversary date.
For close corporations, you're allowed to file from the start of the anniversary month up to the end of the next month (60 calendar days).

When should a entity do bookkeeping?

Weekly: Record transactions, reconcile accounts, and manage invoices.
Monthly: Review income and expenses, reconcile balance sheet line items, and submit VAT if registered.

Why should a entity do bookkeeping?

Compliance: Ensures accurate records for tax, VAT, and CIPC submissions.
Financial clarity: Tracks income, expenses, and cash flow for informed decisions.
Risk reduction: Helps prevent errors, fraud, and financial penalties.

When should my start-up/small business register for PAYE at SARS?

Register with SARS as an employer once you decide to hire staff or start paying salaries, even if only one employee.
Registration must be done before the first payday to avoid penalties.

As a start-up/small business when should I submit income tax?

You’ve registered a company with CIPC, it is automatically registered for income tax with SARS, but you must activate your SARS eFiling profile.
You are a sole proprietor and your business starts trading or earns income
You expect to earn more than R30,000 in profit per year, then you must also register for provisional tax.

Why and when should provisional tax be done?

Individual:

Provisional tax is required for individuals earning income not subject to PAYE, like business profits, rental income, or investment returns.

Companies:

Spread tax payments evenly throughout the year instead of paying a large lump sum at year-end.
Avoid penalties and interest from SARS for underpayment or late payment of taxes.
Provide SARS with ongoing information about expected taxable income, helping both parties plan cash flow and compliance.

When should it be submitted?

1st payment: 31 August
2nd payment: 28 February (year-end)
3rd payment: 31 August (following year)

FAQ