Do you know your VAT from your PAYE, your UIF from your SBC or even your IRP5? Navigating tax as a business owner can feel like you’re drowning in a sea of acronyms, forms and deadlines. Here are the basics you need to understand:
- Your business and personal tax are combined if you’re a sole proprietor;
- When you register your company, it’s registered with SARS;
- Turnover tax is a good option for small businesses that qualify;
- Small Business Corporations (SBCs) get better tax rates;
- Registering for VAT is only mandatory if your turnover exceeds R1 million in a year;
- You and your employees are subject to PAYE tax;
- UIF registration is a must;
- Your expenses cannot offset your tax liability.
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