What will my tax liability be if I start a business?

Jay says:
20 May 2016 at 19:40

Hi, I can provide services such as graphic design, animation, music production and web development. I recently caught attention of few business owners wanting me to do work for them, will I need to pay tax approaching them as self employed individual? I am prepared to charge everything once off based.

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TaxTim TaxTim says:
23 May 2016 at 9:45

If you earn below the tax threshold of R75,000 per year, then no tax is due.
However, if you run a business and earn above this amount you will need to register as a provisional taxpayer and pay tax twice a year on your estimated profit (i.e. sales - expenses).

You will need to declare your income and expenses from your business within the section "Local Trade and Professional Income" of your Tax Return.

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