Types of Business Taxes
Income Tax for individuals and companies; Capital Gains Tax (CGT), SITE, Provisional Tax, Value-Added-Tax (VAT). When employing employees, Employees’ tax is applicable – Pay as You Earn (PAYE), Skills Development Levy (SDL) and Unemployment Insurance Fund (UIF). Turnover Tax applies to smaller businesses.
Due Dates for Tax
Companies / businesses are required to submit an annual tax return within 12 months of financial year-end. Businesses are also required to submit two provisional tax returns – first one within 6 months of year-end and the second at year-end. The annual return should contain actual income for the tax year that has ended. The provisional tax returns should contain estimates of income earned for the current tax year. Provisional tax payment due dates are within six months after year-end for the first payment and within 12 months after year-end for the second payment. In cases where the estimated income and actual income differed, a third payment is due when the final annual tax return is due for any tax amount outstanding based on actual income for the year.
Invoices for Tax
SARS requires for invoices to reflect the following to be considered a valid tax invoice:
- Contains the words “Tax Invoice”, “VAT Invoice” or “Invoice”
- Name, address and VAT registration number (if registered) of the supplier
- Name, address and where the recipient is a vendor, the recipient’s VAT registration number (if registered)
- Serial number and date of issue of invoice
- Accurate description of goods and /or services
- Quantity or volume of goods or services supplied
- Value of the supply, the amount of tax charged and the consideration of the supply (value and the tax)
Supporting Documents Required for Tax
Businesses should keep documentation supporting the figures included in their annual tax return. This include all documentation (financial statements, invoices, cashbooks, ledgers etc.) to proof entries in the accounting records and annual tax returns. It is important to have supporting documentation available especially in the event of SARS selecting you for auditing purposes. It is required that you keep supporting documentation for at least 5 years