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Tax and business Registration?

Posted 9 July 2013

Hi Tim

I am looking to start a business from home. Myself as the owner and 8-9 employee's. Business could generate about R40 000 pm before deductions. Employees would get paid weekly between R600 - R800
per week.

Would I need to register my business with CIPC and with SARS to pay tax. Would I pay tax on the amount of money the business makes before any deductions like salaries and business expenditure. or would tax be calculated on the amount after deductions.

Could you also advise what the process is to register a small business.

Thank you
Your response would be greatly appreciated.

TaxTim TaxTim says:
15 July 2013 at 19:28

If you were looking to register a company and not run the business in your own name then you would need to register with CIPC. Once you have all your company details you would then register with SARS for a tax number and a PAYE and UIF number for your employees if needed. You would pay tax on the taxable income figure, that is the profit after all deductions. If you qualify as a Small Business Corporation which it seems like you will then you will only pay tax after the first R67 111 for the year and then at more favourable rites instead of the flay 28% to normal companies.

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