Being the top boss seems like a fab dream to most but there are so many things to consider before you launch your biz.
The Citizen SA newspaper published an article that I kept for my records. Today, I share some of that insight with you. Please note that this article is aimed at South African readers only. Thank you.
Questions to take note of (Small-business corps)
Is your business a CC, company or co-operative?
Is your business’s turnover less than R20 million a year?
Does less than 20% of turnover come from investment income?
Does less than 20% of your income come from rendering a personal service?
Are all the shareholders/members in your biz natural persons?
NOTE: If you have answered yes to the above – your biz could be making income tax savings by registering as a small biz corp.
INSIGHT ON VAT
A business must register for VAT if the turnover exceeds or likely to exceed R1 million during a 12-month period.
A small biz that is registered as micro under the 6th schedule of Income Tax Act may register for VAT, too – Submit all returns and payments every 4 months (June, Oct, Feb)
Business jargon to keep note of:
PAYE: Pay as you earn (employee tax)
UIF: Unemployment Insurance Fund
VAT: Value Added Tax
So, where can you get a little more info from?
Visit SARS by clicking here. Alternatively, visit the South African Institute of Tax Professionals –thesait.org.za