SARS Tax Basics for a New Small Business in South Africa

Company income-tax registration

SARS states that CIPC-registered companies do not need a separate income-tax registration because registration occurs through the CIPC/SARS interface. The business should then use eFiling and keep registered particulars current.

Provisional tax

Companies automatically fall into the provisional-tax system. SARS describes provisional tax as advance payments toward income-tax liability, generally based on estimated taxable income.

VAT

From 1 April 2026 the compulsory VAT-registration threshold increased to R2.3 million of taxable supplies in a 12-month period, with a higher voluntary threshold as set out by SARS. Check the detailed rules because turnover alone is not the only consideration.

Turnover tax

Qualifying micro businesses with annual turnover up to R2.3 million can consider the simplified turnover-tax regime. Eligibility restrictions apply.

Employees: PAYE, UIF and SDL

When a business becomes an employer, payroll registrations and recurring declarations can apply. SARS says PAYE registration is generally required within 21 business days after becoming an employer unless the exception applies.

Tax Compliance Status

TCS is dynamic. Keep returns, debt arrangements and registered particulars current, especially where contracts/funding require verification.

Use professional help where needed

BXE can organise reminders and operational data. Tax calculations and submissions requiring professional judgement should be handled through SARS and/or a suitable tax/accounting professional.