TAX SERVICES
Tax Services
Filing monthly VAT and PAYE Returns
Filing annual and provisional tax returns for companies and individuals
Registration for various taxes such as VAT, UIF, Workmen's Compensation, Customs and NPO tax exemptions
Letters of good standing with Workmen's Compensation and SARS tax clearances
Filing monthly VAT and PAYE Returns
All companies registered for VAT purposes have to file two-monthly or monthly VAT returns. Companies who employ employees have to register and file monthly PAYE and UIF returns with SARS. We asist with filing to ensure that your business remains compliant with these obligations.
Filing annual and provisional tax returns for companies and individuals
All companies as well as individuals earning income above the annual threshold for filing of tax returns have the responsibility to do so within the annual tax filing season every year. We not only assist with the e-filing of these returns but also offer advice on how to best maximise tax savings within the boundaries of the Income Tax Act.
Provisional tax is not a separate tax from income tax. It is a method of paying the income tax liability in advance at bi-annual intervals, to ensure that the taxpayer does not remain with a large tax debt on assessment. Who is considered to be a provisional tax payer: Any person who receives income (or to whom income accrues) other than a salary, is a provisional taxpayer. Most salary earners are therefore not provisional taxpayers, unless they also receive income from other sources. All commercial companies are considered to be provisional tax payers as well as individuals who receive income from other sources than salary; for example trading income, investment interest income above the annual exempted amount, and property rental income (not limited to only these types).
Registration for various taxes such as VAT, UIF, Workmen's Compensation, tax exemptions
Vat Registration: A vendor making taxable supplies of more than R1 million per annum must register for VAT. A vendor making taxable supplies of more than R50 000 but not more than R1 million per annum may apply for voluntary registration. Certain supplies are subject to a zero rate or are exempt from VAT. VAT is usually paid over to SARS monthly or every second month dependent on the type of vendor registration.
Workmen’s compensation: is a compulsory form of insurance providing wage replacement and medical benefits to employees injured in the course of their employment and is governed by The Compensation for Occupational Injuries and Diseases Act, (130 of 1993) or The COID Act. The aim of the COID Act is to provide for compensation to employees, or their dependents, in the case of death or disablement caused by occupational injuries and diseases, sustained or contracted by employees in the course of their employment, or death resulting from such injuries and diseases, and to provide for matters connected therewith.
NPO Tax Exemptions: Not for profit organisations play a significant role in society as they take a shared responsibility with Government for the social and development needs of the country. Preferential tax treatment is designed to assist non-profit organisations by augmenting their financial resources. The preferential tax treatment for not for profit organisations is however not automatic and organisations that meet the requirements set out in the Income Tax Act, 1962, must apply for this exemption. If the exemption application has been approved by SARS, the organisation is registered as a Public Benefit Organisation (PBO) and allocated a unique PBO reference number. It is important to note that an organisation that has a non-profit motive or is registered as a non-profit organisation (NPO) or Non Profit Company (NPC) does not automatically qualify for preferential tax treatment. An organisation will only enjoy preferential tax treatment after it has applied for and been granted approval as a Public Benefit Organisation (PBO) by the Tax Exemption Unit (TEU).
Pay As You Earn (PAYE). An employer must register with the South African Revenue Service (SARS) within 21 business days after becoming an employer, unless none of the employees are liable for normal tax. All employees that earn a salary above the threshold are liable for normal tax (PAYE) as well as certain part-time workers. Declare such amounts paid to SARS on a Monthly Employer Declaration (EMP201)
Skills Development Levy: Where an employer expects that the total salaries will be more than R500 000 over the next 12 months, that employer becomes liable to pay SDL. SDL is calculated as 1% of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments). The amounts deducted or withheld by the employer must be paid to SARS on a monthly basis, by completing the Monthly Employer Declaration (EMP201).
Unemployment Insurance Fund Registration: Any employee, including a domestic worker, who works for you for more than 24 hours per month must be registered with the Unemployment Insurance Fund (UIF). UIF is calculated as 2% of an employee’s remuneration for UIF purposes, split evenly between the employee and employer, i.e. 1% contributed by the employee and 1% contributed by the employer.T he total UIF contribution (employee + employer) must be paid monthly based on the amounts contained in the EMP201 and UI-19
Letters of good standing with Workmen's Compensation and SARS tax clearances
Knights Accounting can assist with with provide tax clearances as well as letter of good standing
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