This legal support package provides an overview of the different types of taxes that are levied on individuals, sole proprietorships, trusts, partnerships, companies and close corporations. The package includes detailed information on tax rates and the steps that businesses need to follow to ensure that they comply with the tax legislation relevant to their operations.
The pack covers the following taxes and statutory contributions:
- Income tax – which is often paid by means of provisional tax payments;
- Value Added Tax (VAT) – this is levied on the sale of goods or services by businesses with an annual turnover of more than R1 million;
- Dividends Tax – must be withheld by companies that pay dividends or similar income distributions to shareholders/members;
- Capital Gains Tax – is payable in certain circumstances on the net income generated by the sale of a capital asset;
- Donations tax – subject to annual exemptions, this is payable on any donations made by a taxpayer;
- Employees’ tax – this usually takes the form of a pay-as-you-earn (PAYE) tax which is deducted from employee’s salaries;
- Skills development levy (SDL) – to fund education and training in various sectors, 1% of every employee’s remuneration needs to be deducted and paid over to SARS;
- Unemployment insurance fund (UIF) contributions – every business has to pay 1% of the total amount of taxable remuneration paid to the employees as a levy to fund contributions to employees who become temporarily unemployed.
- Turnover Tax – a new alternative that allows businesses with an annual turnover of less than R1 million to pay a single all-encompassing tax.