Obviously the company also has income tax obligations of its own.  On an annual basis, tax has to be paid based on the profits of the entity (regardless of whether it is a company, close corporation, trust or sole proprietor).

Every business in South Africa is required to register for income tax.  Once this is done you have to submit both annual tax returns and provisional tax returns.

Interim returns are known as provisional payments.  These returns are required to be submitted every six months and must contain estimated figures of total revenue earned for that period and to pay over taxes in respect of the income estimated for that period.

This means that you may have to pay tax twice a year and not just at year end, so you need to provide for this in your cash flow forecasts.

How we can help you

We will make sure you are registered for income tax.

We will sit with you a month before provisional payments are due every year to ensure that we do proper tax planning so that you do not pay too much tax and that we minimise the amount that you have to pay in order to protect your cash flows.

We will submit all provisional tax returns and payments on time.

We will submit your final tax return on time and ensure you pay the least amount of tax legally possible.  This means we need to get together a few times a year to ensure we plan your affairs properly.