CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. SARS Introduces New Tax Guides For Small Businesses

SARS Introduces New Tax Guides For Small Businesses

by Lorys Charalambous, Tax-News.com, Cyprus

18 February 2011


The South African Revenue Service (SARS) has issued a new Tax Guide for Small Businesses 2010/11, which contains information about the tax laws and other statutory obligations that apply to small businesses.

The information in the guide relates to the 2010/11 year of assessment that covers, in the case of individuals, the period from March 1, 2010 to February 28, 2011; and, for companies and close corporations, the tax year ending during the 12-month period to March 31. 2011.

It describes some of the forms of business entities in South Africa - sole proprietorship, partnership, close corporation and a private company – and explains in general terms the tax responsibilities of each. It also contains other general information, such as registration, aspects of record-keeping, relief measures for small business corporations, and how net profit or loss and taxable income or assessed loss are determined.

The guide should help to illustrate the specific tax considerations for the different types of business entities, and it contains information on some of the other taxes that may be payable in addition to income tax.

SARS has also issued a further Tax Guide for Micro Businesses 2010/11, which contains information about the simplified tax system for micro businesses - with a yearly turnover up to ZAR1m (USD138,350) - that came into operation on March 1, 2009.

The system, it is said, provides for a single tax that does away with the need to account for income tax, capital gains tax, secondary tax on companies and value-added tax. Applications to switch to (or from) the system are generally due before 1 March each year.

It advises that, as the system is optional, it is important to review the particular firm when deciding on whether to switch or not. Factors such as the profit margin of the business, its expected tax contributions and – most importantly – its tax compliance costs should be taken into account in making the decision.

TAGS: individuals | South Africa | compliance | tax | small business | business | proprietors | tax compliance | revenue guidance | entrepreneurs | micro business | Africa

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »