I run as a sole-proprietor a small beauty business. I have been a student and then on completion of studies decided to work for myself. I am alone in my business and have built up the earning capacity slowly, due to my expenses of buying equipment and upgrading my home salon as I go along. I don't pull a salary for myself of over R8000.00 per month and some months only draw about R2500.00I am not registered for TAX personally as I looked at the tax tables and did not seem to earn enough to have to make a submission? Is this correct? What should I do?Can I carry on as a SP and at what stage should I register as a tax payer?
A sole prop is not a separate entity, but just an extension of yourself when it comes to registering and paying income tax. If the total profits of the salon combined with whatever other income you make exceeds R70 700 then you will pay tax and need to register.
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