When it comes to the legalities that business owners need to comply with after registering their business, most of us have no clue where to start or what we need to be putting on our to-do-lists. We have put together a list so you never have to wonder again. Here are all the legalities you need to comply with after registering an entity in South Africa.
What do I need to submit for tax?
When it comes to the tax requirements, after registering your business, you are required to submit 3 tax returns per financial year. These returns include 2 provisional tax returns, one 6 months into the financial year and one at the end of the financial year. The provisional tax returns are estimates of profits or losses for the company over the respective periods. The final tax return you are required to submit is an income tax return, this needs to be submitted within 12 months after the financial year end.
In addition to tax returns, if you are registered for VAT (as a business which has a turnover of R1 million and above), you are required to submit your VAT returns. This will be done either once a month or once every two months, the regularity of the VAT submissions depends on your income and which VAT category you fall into. Further information of VAT categories can be found on the SARS website.
What do I need to submit for payroll?
In order to comply with business legalities, you need to register your employees for payroll taxes. You are then required to submit payroll returns for the entire entity per month (EMP201). This is due on the 7th of the following month, provided the 7th does not fall on a weekend (if this is the case, it is due on the Friday prior to the date).A detailed return (EMP501) is required to be submitted for individual employees’ information for the period up to August, the due date for this return is the end of October. At the end of the financial year, another detailed return is submitted, this is due at the end of April. These two detailed returns will be broken down and filled into the employee’s IRP5 documents for their individual income tax.
What do I need to submit for business registration?
For the CIPC, the Companies and Intellectual Property Commission, you will be required to submit one return per annum and pay an annual fee. This is to maintain your business registration.
Need some help with your business finances?
If you have any questions, need help understanding the ins and outs of ensuring you are complying with business finance legalities, contact us at firstname.lastname@example.org, via our website, or on social media.