This guide contains information about the tax laws and some other statutory obligations that apply to small businesses. It describes some of the forms of business entities in South Africa – sole proprietorship, partnership, close corporation and a private company – and explains in general terms the tax responsibilities of each.
It also contains general information, such as registration, aspects of record-keeping, relief measures for small business corporations, and how net profit or loss and taxable income or assessed loss are determined. This helps to illustrate the specific tax considerations for the different types of business entities. Furthermore, it contains information on some of the other taxes that may be payable in addition to income tax.
While the information in this guide applies to different kinds of businesses and is of a general nature, specific types of businesses such as insurance companies, banks and investment companies are not discussed. However, the requirements of the tax laws regarding, for example, registration and filing of tax forms also apply to these businesses.