28 Dec Registering for income tax
Businesses registering for income tax
Are you registering for the first time? The South African Revenue Service (SARS) made changes to the way taxpayers register and/or amend their details (link – reproduced below for your convenience).This is aimed at making registering easier for taxpayers, improving the reliability and security of data and ultimately giving taxpayers a single view of their tax portfolio.
When do you need to register for Income Tax?
A company must be registered with the Company Intellectual Property Commission (CIPC) to obtain a registration number. For registration procedures see www.cipc.co.za. The company will then be registered automatically as a taxpayer. A company which does not hear from SARS after registering with CIPC, must contact their nearest SARS office. If a company is not yet registered with SARS, they will, for security reasons, need to do their first-time registration at a SARS branch. They will not be able to register for the first time via eFiling. Depending on other factors such as turnover, payroll amounts, whether involved in imports and exports etc, a taxpayer could also be liable to register for other taxes, duties, levies and contributions such as Value Added Tax (VAT), Pay-As-YouEarn (PAYE), Customs, Excise, Skills Development Levy (SDL) and Unemployment Insurance Fund (UIF) contributions.
What if you want to register for another tax product?
Once registered for income tax, if you wish to register for VAT or PAYE, you don’t need to go through a lengthy registration process again as you can apply via eFiling. Alternatively, you can come into a branch and bring in the forms normally used to register for that particular tax product, as well as all required supporting documents. Registration for income tax, PAYE and VAT will be realtime, with VAT possibly requiring an additional review step. Registration for Customs and Excise products will follow the same process as it always has, i.e. the relevant application forms and annexures need to be brought into a Customs/ Excise branch and they will be sent away to a Customs Hub for processing.
A word of advice
1. Register for eFiling (if you have not already done so) – it will make your life easier! eFiling will enable you to: • register for different tax products including PAYE and VAT online (if you have registered as a legal entity and are on eFiling) • manage all your tax products yourself (e.g. update demographic details if they change) • give access to additional people to use this service if you are the representative person of a company/trust/other legal entity You can save time and money by doing all this from the comfort of your home or office!
2. Register your employees with SARS via the e@syFile™Employer ITReg service. It’s a much quicker process for them than having to come into a SARS branch to register. You can download e@syFile™ Employer via the SARS website/SARS eFiling.
3. Make sure your identity details are correct with CIPC (if you run a company) and Home Affairs (if you are an individual) as we will be basing our demographic data on this data after the new system is implemented.
4. When you want to activate the Representative person that represents your company in your dealings with SARS (e.g. a Public Officer), the person firstly needs to be registered with SARS and secondly, he/she needs to come into a SARS branch to get “linked” to the company. Remind your official representative to bring in all relevant supporting documents (i.e. ID document, Passport in the absence of an ID, and Power of Attorney/ official letter of appointment /Board resolution) on their first visit, after which they will only need to bring in their ID document if they visit a SARS branch. It must be noted that a Public Officer must reside in the Republic.
Visit Office Badger (link) for more information. Office Badger is a leading accounting, tax and advisory firm in Johannesburg South Africa.