The key steps for tax compliance in South Africa are very crucial to ensure that taxpayers in the South African tax administration enjoy a smooth sail of compliance over the years.
Taxation is one of the tools employed by the government to generate funds for the public purse and ensure that every citizen contributes their quota to the development of the nation.
It is therefore essential for citizens to engage in tax compliance by registering with the tax authority in their country.
In South Africa, whether as an individual or as a company, taxpayers are expected to register with the South African Revenue Service (SARS) and obtain a Tax Identification Number (TIN), a tax number that is unique to every taxpayer.
To be able to effectively carry out one’s duty as a taxpayer in South Africa, here are some of the Key Steps For Tax Compliance.
Key Steps For Tax Compliance in South Africa: Individuals
In South Africa, remittance is necessary for citizens, whether they are paying it directly to the government through their wages and salaries, or indirectly when they are charged Value Added Tax (VAT) upon the purchase of any goods or service.
It is when you register with SARS that you get the Tax Identification Number (TIN) which is required when you are making a transaction.
The process for registering for taxes is free of charge and you can register with SARS using one of three methods:
1. You can visit SARS’ website, follow the easy steps below, and a tax reference number will be generated for you:
- Log on to the SARS e-Filing website.
- Click on “Register”.
- Fill out the online form.
- Submit the application.
To register as an individual, one is expected to provide valid and unexpired proof of identity such as a National ID document.
2. Another method is to register through your employer who will submit your income tax registrations to SARS.
3. The final method is to book an appointment at the SARS office and bring the following details with you:
- National ID document for citizens or Passport/ID Card details for foreigners.
- Original bank statement issued within the past 3 months and stamped by the bank.
- A verified proof of address such as a Utility Bill.
Key Steps For Tax Compliance in South Africa: Companies
Tax registration in South Africa is compulsory for companies doing business in the country.
Companies are expected to have a SARS TIN while conducting businesses such as buying and selling land, importing goods, and so on.
Here are the key steps for compliance:
- Contact the Company and Intellectual Property Commission (CIPC): The first step that a company needs to take is to register with the (CIPC) offices.
- Register with SARS: The second step is to register with SARS for an Income Tax Reference Number.
- Register on eFiling: The final step is to register on eFiling to transact electronically.
The documents needed to complete the registration include;
1. Income tax reference number.
2. The nature of business.
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