Small Business Tax Rates

Close Corporation / Company qualifying as Small Business 1st April 2023 to 31 March 2024

0 – 95 750                          0% of taxable income

95 751 – 365 000              7% of taxable income above 95 750

365 001 – 550 000            18 848 + 21% of taxable income above 365 000

550 001 and above              57 698 + 28% of taxable income above 550 000

Dividend Tax

• 20% paid by resident companies

 Donations

• First R100 000 donated by an individual per year is exempt
• 20% donations tax
• 25% if donation exceeds R30 million

Estate Duty

• Basic deduction/rebate R3.5 million per person
• 20% on first R30 million exceeding R3.5 million
• 25% above R30 million

 Value Added Tax

• 15% from 1/4/2018

 Advice On Using The Correct Business Structures

• considering a company or a close corporation to operate your business in
• advice on using a trust to build your personal estate
• optimising income tax by using the correct entities
• minimising estate duty and CGT by putting growth assets in the correct entities
• minimising personal liabilities

Sole Proprietor

• the most basic business entity
• widely used by small business entrepreneurs and farmers
• few formalities
• paying income tax at the individual rate (max 45%)
• paying CGT at a maximum effective rate of 18% (annual exemption R40 000)
• personally liable for the liabilities of the business

 Partnership

• for two or more persons going into a joint venture
• a bit more formal
• a written partnership agreement is recommended
• paying income tax at the individual rate (max 45%)
• paying CGT at a maximum effective rate of 18% (annual exemption R40 000)
• personally liable for the liabilities of the business

 Close Corporation

• recommended for small businesses who want a separate legal entity
• more formalities to cope with (as governed by the Close Corporations Act)
• members – maximum of 10
• paying income tax at 28% from R1
• paying CGT at an effective rate of 22.4% from R1 (no annual exemption)
• separate legal entity

 Company

• the ultimate business entity for bigger businesses
• most formalities of all the entities as ruled by the Companies Act
• unlimited shareholders – also legal persons
• paying income tax at 28% from R1
• paying CGT at an effective rate of 22.4% from R1 (no annual exemption)
• separate legal entity

Trusts

• Complete registration of Inter Vivos and Business Trusts
• Trust deed legal audits
• Update Trust deed
• Trust administration
• Trust amendments

 Living Wills

• Drafting of living wills

 Drafting of Wills

• giving advice on your will
• drawing up your will from a proper estate plan
• taking into account Estate Duty and CGT issues
• trying to be as practical as possible
• keeping it simple

 Advice on Bequests

• helping you to be practical
• using your business structures effectively
• using your primary rebate effectively
• using your spousal bequeath effectively
• protecting your minor children

Acting as Executors or Administrator in Deceased Estates

• advice on who to appoint as executor
• advice on how to keep the costs low
• acting as Executor or assisting the Executor as Administrator
• giving you an upfront fee of what we will charge

Proper Systems for Safekeeping of Wills

• we keep your original will on file
• you get a copy of the will
• we have proper control over the movement of a will
• we ask no fee for safekeeping

Business Administration Including All Statutory Requirements 

• keeping track of all the prescribed statutory requirements
• full administration, including completion and submission of returns
• administration of “payroll” taxes including PAYE, SDL and UIF
• Workmen’s Compensation administration and submissions
• handling of all tax-related administration

Implementing Tax Planning Strategies 

• using the correct business structures to minimize taxes
• advice on tax-saving strategies before tax year-end
• advice on structuring your remuneration package efficiently

 Income Tax Administration

• handling all your income tax administration
• completing and submitting your annual tax return
• checking your assessment
• handling all correspondence and queries with SARS
• handling provisional tax calculations, submissions and payments
• bank verification with SARS
• applications for tax exemption

 VAT Administration

• helping you to cope with the burden of VAT
• processing all your business transactions
• calculate your VAT claim/liability for each VAT period
• submitting your VAT201 returns
• handling all correspondence and queries with VAT audits

Secretarial Work For Companies, Close Corporations And Trusts 

• new registrations companies and trusts
• acting as accounting officers for close corporations and companies
• acting as accountants and independent trustees for trusts
• change addresses and directors of companies and members of close corporations
• assisting with statutory requirements such as the keeping of minutes, share registers etc.
• registration with the Department of Social Development for NPO’s

Administration of Your Payroll 

• plan, implement and administer payroll systems
• helping you with the ever-increasing burden of “payroll” taxes
• calculating and filing your monthly EMP201 returns
• handling PAYE, SDL, UIF and Workmen’s Compensation returns
• handling all correspondence and queries
• we issue IRP 5’s, IT 3’s and EMP 501’s

Processing Of Financial Transactions 

• proper bookkeeping from source documents
• using several accounting software packages: Pastel, Sage One, Xero and Quickbooks
• bank, credit and cash transactions
• processing of debtors, creditors, stock and general ledger transactions
• keeping proper audit trails for audit and tax purposes
• plan, implement and administer accounting and point of sale systems

Preparation Of Monthly Management Accounts (Accounting)

• preparation of management accounts on a regular basis
• keeping track of income and expenses
• monitoring income and expenses against budgets
• getting up to date information to monitor your business
• taking immediate action when a problem arises

Drafting Of Annual Financial Statements (Accounting)

• for personal use to gauge your business against previous years and/or budgets
• to re-negotiate your overdraft facilities
• to submit your tax return
• to sell your business to a potential buyer

Preparation Of Budgets And Cash Flow Statements(Accounting)

• to plan ahead
• to use as a benchmark to gauge actual performances
• to re-negotiate credit facilities
• to anticipate potential problem areas in your business
• forms part of your long term business plan