Hi Tim, I have started a small web design business with a turnover of just under R60 000 per year. I am struggling financially, so my father has been helping me with another R60 000 per year as a donation. I have read on the SARS website that as a sole trader if I earn less than R250 000 per year I do not have to register with SARS and I have no need to register for VAT. My question is, do I need to register with SARS for income tax as my income falls under the threshold without the donation or do I have to register because my turnover added to the donation is above the threshold?
The donation is completely separate and does not constitute turnover if you father id donating it to you. The R250 000 rule is or salaried employees only earning income from a salary from one source and no other deductions at all. For a sole trader you would need to become a Provisional Taxayer
It would be best to obtain a SARS tax number now that once you cross the earnings threshold you will be able to have it on hand.
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