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What Is Provisional Tax and Must I Pay It?
Quick Answer What Is Provisional Tax and Must I Pay It? Provisional tax is not a separate tax – it is paying your normal income tax in advance, in two instalments (end August and end February) with an optional third top-up (end September). All companies are provisional taxpayers, as is anyone earning income that has no PAYE deducted. What this means in plain language PAYE employees have tax deducted monthly; everyone else – companies, sole proprietors, freelancers, landlords – pays it themselves in advance, based on an estimate of the year’s income. The IRP6 return is the vehicle. The trap is the estimate: underestimate by too much and SARS adds…
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What Is Tax Compliance Status (TCS) in South Africa?
Quick Answer What Is Tax Compliance Status (TCS) in South Africa? Tax Compliance Status (TCS) – the old “tax clearance certificate” – is SARS’s confirmation that your registrations, returns and payments are up to date. Instead of a paper certificate you share a TCS PIN, which lets a tender or funder verify your status online in real time. What this means in plain language TCS is the single most-asked-for compliance document in South African business. Tenders, corporate supplier applications, funding and even some leases require it. Because it is a live status, not a certificate, it can flip to non-compliant the moment you miss a return or a payment –…
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When Must a Business Register for PAYE?
Quick Answer When Must a Business Register for PAYE? A business must register for PAYE as soon as it pays remuneration to any employee – even one part-timer, and even the company’s own director drawing a salary. Registration is with SARS, is free, and is done on eFiling under Maintain SARS Registered Details. What this means in plain language There is no minimum salary threshold for employer registration: the trigger is paying remuneration at all. The employee’s tax may calculate to zero under the rebate, but the employer registration and monthly EMP201 still apply. PAYE registration also unlocks the UIF and SDL registrations, which ride along on the same employer…
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What Is a SARS Tax Number and How Do I Get One?
Quick Answer What Is a SARS Tax Number and How Do I Get One? A SARS tax reference number is the unique number identifying a person or company to SARS. Companies receive one automatically when registered at CIPC. Individuals and sole proprietors register on eFiling or at a SARS branch with an ID and proof of address. What this means in plain language One number per taxpayer, for life – it follows you across jobs and businesses. A sole proprietor uses their personal tax number for the business; a company gets its own separate number. You need it everywhere: opening a business bank account, registering on eFiling, applying for Tax…
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What Is Turnover Tax in South Africa? (2026 Rules)
Quick Answer What Is Turnover Tax in South Africa? (2026 Rules) Turnover tax is a simplified SARS system for micro businesses with annual turnover of R2.3 million or less (from 1 April 2026). You pay 0% to 3% of turnover instead of normal income tax, provisional tax, CGT and dividends tax. It is optional – you must elect to register. What this means in plain language The trade: simplicity for certainty. You tax the top line (sales), not profit, so there are no expense deductions. High-margin service businesses usually win; thin-margin retailers can pay more than under normal tax. The 2026 jump from R1 million to R2.3 million doubles the…
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What Is a SARS Public Officer and Does My Company Need One?
Quick Answer What Is a SARS Public Officer and Does My Company Need One? A public officer is the natural person a company appoints as its official representative to SARS – answerable for the company’s tax affairs. Every company carrying on business must appoint one within one month of starting to trade. It is usually a director, and SARS holds that person accountable. What this means in plain language The public officer is SARS’s point of contact with the company: the person who signs returns, answers queries and is expected to ensure compliance. In small companies it is almost always the founding director. The role carries real responsibility – SARS…
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