ON Q Acc | Accounting Made Easy

Who needs to file a tax return?

All individuals who earn above the tax threshold must file an annual income tax return with SARS. This includes salaried employees, freelancers, and business owners.

What documents do I need to file my tax return?

You'll need your IRP5/IT3(a) from your employer, medical aid tax certificate, retirement annuity certificates, investment statements, and any other income-related documents.

Can I claim medical expenses on my tax return?

Yes, you may qualify for medical tax credits if you contribute to a registered medical aid scheme. Additional qualifying medical expenses may also be claimed.

What are the penalties for late tax filing?

SARS imposes administrative penalties for late or non-submission of tax returns. Penalties are calculated based on taxable income and can accumulate monthly.

How do I register a company in South Africa?

You must register your company with the Companies and Intellectual Property Commission (CIPC). The process includes choosing a company name, submitting the required documents, and paying the registration fee.

What is the annual return and when is it due?

Every registered company must file an annual return with CIPC. The due date depends on the anniversary of your company's registration date.

When should my company register for VAT?

VAT registration is mandatory once your taxable supplies exceed R1 million in a 12-month period. Voluntary registration is available if turnover exceeds R50,000.

What is the difference between a Pty Ltd and a CC?

Close Corporations (CCs) can no longer be registered in South Africa. However, existing CCs can continue to operate. A Pty Ltd offers limited liability and is the recommended structure for new businesses.

Frequently Asked Questions