Tax planning is a year-round event if you want to minimize your business’s tax bill. Whether it’s surviving an audit, capitalizing on business deductions, or finding tax-friendly ways to run your business, it is wise to use a guide who can help reduce your tax obligations and make paying taxes less anxiety provoking.
Various forms of taxation are levied in South Africa and the extensive and constantly changing taxation legislation can prove to be a minefield. Tax laws are complex. At the time of writing, the South African government has proposed several sweeping changes to the South African tax legislation which will have both positive and negative effects.
In this regard, the South African government has concluded its public hearings and consultative process for the proposed tax amendments and has released the final tax bill which only awaits promulgation by parliament before coming into effect which is expected to be in the near future.
Currently, Personal service provider companies are rated at a company’s tax percentage of 33%. All other incomes for example “ordinary” income can expect a rate of tax percentage of 28% and foreign resident companies that trade in South Africa through a branch or agency a tax rate of 33%.
If you are a small business owner and your earnings range between R0 and R57 000 the companies tax percentage is 0%. For earnings between R57 001 and R300 000, the tax rate is 10% above R57 000. For small business corporations earning between R300 001 and above it is R24 300 plus 28% above R300 000.
Tax Relax is a registered SARS tax advisory practitioner established in 1997 and we take pride in managing your individual or company tax requirements. No need to fuss about your taxes because with Tax Relax you can relax about your tax.