If you are just getting started and need to register a corporation, you must approach the Company and Intellectual Property Commission (CIPC), formerly known as CIPRO. Please keep in mind that before registering with SARS for an Income Tax reference number, companies must first register with the (CIPC) offices. SARS will immediately generate an Income Tax reference number for a taxpayer who has registered with CIPC. To transact electronically, the taxpayer must first register with eFiling.
The nature of your firm has a significant impact on how much tax you pay.
There are numerous types of businesses. We have discussed the legal form of each, as well as the primary benefits and drawbacks of each.
- Single-person business
- Collaborations
- Private Businesses
- Dissolve Corporations (CC) Despite the fact that no new CCs can be formed at this time,
Other business kinds include:
- a) Small business corporation (SBC)
- b) Micro business
Click here to learn more about turnover tax for these types of businesses.
- c) Personal service giver
Please see the Tax Guide for Small Businesses for a complete definition.
Labour broker
Please see the Tax Guide for Small Businesses for a complete definition.
Independent contractor
Please see the Tax Guide for Small Businesses for a complete definition.
Small, medium, and micro businesses (SMMEs)
Information about SMMEs, details of various assistance schemes, rebates, incentives, and information such as how to start a business, types of business entities, and requirements for business entity registration can be found through the Department of Trade and Industry or its website www.thedti.gov.za.
Top Tip: Some firms work with a Tax Practitioner to handle their tax issues. Deal only with registered and recognized tax practitioners; you may verify if they’re registered with an accredited professional body, and you’ll have more security if they’re a member of a registered practitioner association.
Does CIPC register for tax?
SARS will immediately generate an Income Tax reference number for a taxpayer who has registered with CIPC. To transact electronically, the taxpayer must first register with eFiling. The nature of your firm has a significant impact on how much tax you pay. There are numerous types of businesses.
Do small firms in South Africa have to pay taxes?
Qualifying enterprises will only have to declare and pay one (1) tax (unless they have a VAT or PAYE option) and will begin paying tax when their annual turnover exceeds R335 000. A small business that has registered for Turnover Tax may also register for VAT.
