Let’s be real—taxes aren’t exactly the highlight of running your business. But if you play it smart, you can keep more money in your pocket while staying on SARS’s good side.
Here are some of the points we covered in our tax tips and tricks webinar for entrepreneurs, in case you couldn’t be there (we hope the FOMO was real):
1. Tax Year = March to February. Diarise these dates!
- SARS isn’t here for excuses. If you’re a non-provisional taxpayer (aka your boss sorts out PAYE), your tax return is due October 31.
- If you’re provisional (freelancers, side hustlers, biz owners), you need to pay twice a year—August and February.
2. Your Tax Rate Depends on Who You Are
- Individuals: Pay tax on a sliding scale (more money = more tax).
- Companies: Flat 27% tax rate—this could be a win if you're making serious cash.
- Small Businesses: If you qualify for Small Business Corporation (SBC) tax rates, you could save but make sure you do the exercise of comparing the different options before you opt into this.
3. Tax Deductions = Free Money (sort of)
Every business expense you claim = less tax to pay.
Think:
- Home office? Claim a portion of your rent, WiFi, and electricity.
- Medical aid & retirement savings? Tax-deductible, baby!
- Equipment, software, travel? If it’s for business, it counts.
4. Tax Avoidance = Smart. Tax Evasion = Jail.
Minimizing tax legally? Cool.
Hiding income or dodging tax? Not cool.
Keep every receipt, log your expenses, and don’t try to outsmart SARS. They will always catch up.
5. Running a Business? Keep Business & Personal Separate
Got a registered business but no income yet? SARS still wants to hear from you. Filing a return is a must, even if it’s a zero.
Final Tax Pro Tip: Don’t Guess. Ask for help!
Tax doesn’t have to be scary, but it does have to be done right. If you’re confused, talk to a tax pro, chat to us, or use software that makes life easier (a.k.a. stub 😉)
Paying tax equals being a legitimate business owner. The trick? Pay what you owe, but not a cent more than necessary.