I have a client who is the director of a small company (pty). Currently the profit of the company is less than R50 000. He has no other income. The PTY is registered for tax and and has submitted tax returns. The director is not registered for income tax. If he declares the R50 000 as his salary does he even need to submit a tax return as he is below the threshold?
He should always submit a tax return to ensure he is tax compliant for all years.
Garthsays: 19 April 2016 at 21:09
He isn't even registered as a taxpayer. Is it required by tax law or any other law that a director of a company in SA must be registered for tax was the question.
TaxTimsays: 24 April 2016 at 19:17
Yes, regardless of whether a taxpayer is a director or not if he earns income in SA then he must register as a taxpayer. It is always advisable as well to submit a tax return to make sure that when he does start paying tax he will be fully compliant going forward.
Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.