Registering Your Company For Tax
With the provisional tax deadline of 31 August for companies approaching, navigating the intricate process of filing taxes as a small business in South Africa may initially appear overwhelming. However, as an integral aspect of effectively managing your business affairs, understanding the initial steps can ease the uncertainty surrounding this crucial obligation. In this article, we will guide you through the process of setting up your company for tax.
Every business liable to taxation, under the Income Tax Act, is required to register with SARS as a taxpayer. For CIPC registered companies you are not required to perform a separate SARS tax registration for Income Tax, as your company will automatically be registered via the CIPC’s direct interface.
SARS requires that you file annual tax returns and they require all companies with a few exceptions to submit “signed financial statements”.The minimum requirements for these financial statements are that they should contain a balance sheet, income statement and notes and they must be signed by the public officer or company representative.
Note: SARS has been enforcing penalties where companies have failed to submit tax returns and the request for such returns to be lodged has been ignored. It may be beneficial to consult with a financial professional when completing your company tax returns to ensure compliance.
Nominating a Registered Representative
A registered representative is a person who is appointed with full rights to act on behalf of another legal entity. This can be one of the company’s directors or public officers (internal); you can also nominate an accounting officer (internal/external)
You can use the SARS Online Query System (SOQS) to register or update the Registered Representative of a taxpayer in respect of Income Tax, PAYE and VAT.
To register, the documents required are:
Representative Appointment letter/Director’s Meeting Minutes
This letter specifies the rights of the Representative to act on behalf of the Represented Entity and is available to download on the SARS website.
The Representative can also be nominated through a signed resolution of the board of directors
Enterprise Notice of Incorporation
Copy of Registration Certificate or Notice of Incorporation in the case of a Company
Identity document /Passport document
A copy of ID/Passport document of the Representative;
An image taken on the day that the request is submitted, showing the Represenatitve holding up a copy of Identity Document and a note that reads ‘Update my details’
Proof of residential address of the Representative.
A SARS official will verify the information submitted and complete the case within 21 business days
Setting Up Your Company on Your E-filing Profile
To set up a new eFiling profile for a company, the Registered Representative will need to ensure that they have all the company documents ready to use during the process including:
Name of the company
Address and contact number
SARS tax number
Company registration number
Company banking details
The year end of the company (found in the registration documents)
Too add the company on the Representative’s e-filing profile
Go to “Portfolio Management”
Click on “Add Portfolio” at the top right side and then create a portfolio.
Under the Portfolio Type, select the option for organisation.
Thereafter, at the top of the screen click on “Organisation”
Click on the “Register New” button on the left of the screen.
Select and complete the details of your business, once completed, click on “Add Taxpayer”.
In the middle of the next screen click on "Manage Tax Types"
Select 1. Provisional Tax (IRP6)” and 2. Organisation Income Tax (ITR14) and click on submit
You can also follow a similar process to register for other tax types including VAT, Employees Tax etc. You are now ready to complete and submit taxes for your company!
For assistance with tax planning, tax returns, financial modeling and financial statements contact us at Unchartered
