2021 | Virtual Tax - Accounitng

SARS has recently changed the way in which newly registered companies are registered on eFiling. Once you have done a company registration, CIPC automatically notifies SARS, who then issues the company with an income tax number.

Appointing a public officer after a company registration

Before a company can be registered on eFiling, one of the directors has to be appointed as the public officer at SARS. This means that they will verify the contact details, and link the business tax profile to the personal tax profile of the public officer.

After this process is done, the company can register on eFiling using a one time pin(OTP) which is sent to the public officer. Returns can then be submitted and a tax clearance obtained.

Email us and we will gladly supply more info.

COIDA

COIDA – Domestic workers

by Andre van Niekerk April 8, 2021March 14, 2022

As from 1 March 2021, it is mandatory for all individuals who employ domestic workers to register for COIDA. COIDA, or otherwise known as workmen’s compensation, refers to cover in case an employee is injured whilst on duty. Click on the link below to download a copy of the Government Gazette where this is announced.

COIDA - Domestic worker Government Gazette

1 file(s) 4.55 MB

Download

Registration and coida returns

Firstly, all employers of domestic workers need to register with the department of labour. After a registration number is received, a return must be submitted. On the return, the annual salary of the domestic worker needs to be declared, and a premium will be calculated according to the information provided. The premium then needs to be paid by the employer.

PAYE

PAYE recons 2021

by Andre van Niekerk March 16, 2021March 17, 2021

Employers have to submit their annual PAYE recons, also known as the EMP501 before 31 May 2021. This applies to all employers who

This is applicable to all employers who are registered for PAYE and deduct employee tax from their employees on a monthly basis. After the recon is submitted, IRP5 certificates will be generated for all employees. These certificates have to be handed over to the employees in order for them to submit their annual income tax return to SARS.

Failure to submit the PAYE recon will result in a penalty of 1% of the annual PAYE liability of the company.

CIPC

Company registration at only R450

by Andre van Niekerk March 3, 2021March 3, 2021

Company registration at only R450 only for the month of March 2021. This includes the registration of an income tax number at SARS. Turnaround time is 2 days if all documents are received in time.

The following documents are needed for the registration of a private company:

Company

2 or 3 possible names for the company
Physical address for company
Email address

The following is needed for every director:

ID copy
Physical address
Email address
Cellphone number

All the above documents can be mailed to . Please note that a deposit of R200 is required before any work commences.

PAYE Tax

Registered a company, whats next?

by Andre van Niekerk February 11, 2021February 11, 2021

A lot of people are currently starting companies at the moment due to job losses and seeking alternative income. Unfortunately, these business owners are never advised on what steps to take next i.t.o staying compliant at SARS and other state institutions. Below is a bit of a break down of what needs to be done and which returns need to be submitted.

Bank account

The first thing you should do is open a bank account for the business. Without one, you will not be able to register for any tax types, or register on the central supplier database.

Tax returns

The company will be liable for tax from the day it is registered. After the end of each financial year, a set of financial statements will have to be compiled. These information on these financial statements will be used to submit the tax return of the company.

Provisional tax

During the year, all companies have to submit 2 provisional tax returns based on the figures of the current financial year. The first one is 6 months into the year and the second 12 months. So for company with a February year end, it will be August and February.

Employee tax

As soon as one of your employees earn more than R6 918(for the 2021 financial year), you will have to register at SARS for employee tax. Or PAYE as it is known. You will have to deduct PAYE on a monthly basis from the employee and pay it over to SARS before the 7th of the following month. This also means that you will have to provide all employees who tax are deducted from with an IRP5 certificate on an annual basis.

VAT

Once a company has a turnover of more than R1 million for a 12month period, they have to register for VAT. There is also an option for companies to voluntarily register if their turnover is less. The VAT is then calculated every second month and paid over to SARS. A lot of customers and suppliers prefer to do business with companies who are VAT registered. You will also need to be VAT registered in order to apply for tenders or contracts.

CIPC – Annual returns

All ompanies have to submit an annual return to CIPC every year. Click here for more information.

CIPC

CIPC – Annual returns

by Andre van Niekerk February 11, 2021February 11, 2021

Everyone always talks about annual returns from CIPC, but not many business owners know what it entails.

Who needs to submit?

All private companies, close corporations, personal liability companies and non profit companies. The annual return has to be submitted in the anniversary month of the company. If the company was registered in May, the annual return will also be due in may.

Details required

The main details required by CIPC are the annual turnover of the company. The details must also be completed for the person/s responsible for keeping the financial records of the company.

Tax

Does your company have outstanding tax returns?

by Andre van Niekerk February 8, 2021February 8, 2021

If you have not submitted your company’s tax returns in terms of tax, PAYE or VAT, contact us today.

SARS has intensified their collection process, and is currently busy raising admin penalties for any outstanding returns. These admin penalties are up to R250 per month for every returns that has not been submitted. This can lead to a substantial amount that has to be paid to SARS.

Business owners must also remember that they have to continue submitting returns as long as the company is registered, even if it is not trading.

Tax

Provisional Tax – 202102

by Andre van Niekerk February 1, 2021February 1, 2021

Please note that all private companies and close corporations have to submit provisional tax before 28 February 2021.

The provisional tax return covers the period from 1 March 2020 to 28 February 2021. Failure to submit or under declaring your income can lead to admin penalties being raised.

All companies and close corporations have to submit returns, even if the company has not traded for the financial year under scrutiny.