Blog Q&A Calculators Students Logbook Contact
Only 1 Days Remaining of Tax Season 2017! Click here to file your tax return with TaxTim now.

Is our company a Personal Service Provider.

Posted 18 January 2016 under Tax Q&A


Small
Business
Tax Returns
Made Easy


TaxTim will help you:

 Do Your ITR14 Tax Return without a Tax Expert
 Claim for all the Deductions your Business Qualifies for
 Turn your Accounting Records into a Tax Return

TaxTim asks you simple questions about your business, then processes your answers and completes your ITR14 business tax return instantly.

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
Alan says:
16 January 2016 at 19:40

Our company has 3 directors and no separate employees. Two directors work for the company and the third (me) doesn't work for the company. The company supplies IT services, sales and consulting to many clients, no one of which generates more than 80% of our turnover. However, the services, etc are supplied to all clients by the working directors as there are no other employees. Turnover will be about R2 000 000 in this tax year. Will we be seen as Personal Service Providers and if so, what is the difference in the company tax that needs to be paid.

This entry was posted in Tax Q&A and tagged . Bookmark the permalink.

TaxTim TaxTim says:
16 January 2016 at 23:36

Are the directors all shareholders?

Alan says:
17 January 2016 at 0:44

Hi there,

Yes, all three of us directors are shareholders.

TaxTim TaxTim says:
18 January 2016 at 9:47

Then unfortunately you will still be seen as a PSP - normal tax of 28% would apply to the company.


Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Small
Business
Tax Returns
Made Easy


TaxTim will help you:

 Do Your ITR14 Tax Return without a Tax Expert
 Claim for all the Deductions your Business Qualifies for
 Turn your Accounting Records into a Tax Return

TaxTim asks you simple questions about your business, then processes your answers and completes your ITR14 business tax return instantly.

Get started