January 28, 2013

Income Tax Registrations for Closed Corporations and Companies

1. When should a business entity register with SARS?

As soon as the entity is registered with CIPRO/CIPC and received a registration number it becomes mandatory to register with SARS.

2. What if the business trades as a sole proprietor?

The owner should then register as an individual taxpayer if not already registered. If already registered the business need not to register for a separate income tax number as all income must be declared in the owner’s personal capacity.

3. Is this the same as a VAT registration?

No, this is often confused but Income Tax Number and VAT number is two totally different tax types. Income tax registration is compulsory whereas VAT registration depends on quite a few factors. The business must however be registered for income tax before a tax clearance or VAT number can be applied for.

4. What happens after the entity has been registered for income tax?

The entity will automatically be registered for provisional tax. Provisional tax returns must be submitted twice a year where applicable. Income tax returns must also be submitted annually. Proper recordkeeping must be done and the use of professional accountant in this regard is strongly recommended.

5. When will I receive the tax clearance certificate?

If you selected the option to receive a tax clearance certificate, it will be posted via priority mail to the client 10 -21 working days after the entity is registered for income tax. This tax clearance is valid for 12 months.

A CC refers to a Close Corporation and a PTY to a Private Company.

What does it mean to register a CC/PTY for income tax?

Once a CC/PTY is registered at the Registrar, a registration document (CK1/CM1/COR 14.3) is issued which contains the registration number. This is not to be confused with the CC/PTY’s Income tax number. A registered CC/PTY needs to register with SARS and obtain an income tax number. This can be done by completing the simple form below. Note that you cannot register a CC/PTY for income tax if the CC/PTY has not been registered at the Registrar and obtained a Registration number. Register a Company at the Registrar here.

How does it work?

Step 1

Fill in the form below.

Step 2

Pay the R650 (R850 if tax clearance is also needed) and fax/email us the proof of payment.

Step 3

Post the documents as indicated in “Documents needed” below to us.

We do the rest. As soon as the business is registered for income tax at SARS you will receive an email stating the CC/PTY’s income tax number. If tax clearance option was also selected it will be posted to you via registered priority mail 10 -21 working days after business has been registered for income tax.

What is the turnaround time?

The turnaround time to register a CC/PTY for income tax purposes is 10 -21 working days after we have received all documents from the client. If you selected to obtain a tax clearance as well 10x original certificates be couriered to you within 10 -21 working days after the CC has been registered.

Documents needed

  1. An original letter from the bank (stamped by the bank) confirming the CC’/PTY bank details.
  2. The registration document (CK1/CK2/CM1/COR 14.3) of the CC/PTY.
  3. Certified Copies of ALL the member/director(s) ID’s of the CC/PTY
  4. Download the Power of Attorney form , complete and send to us.

These documents must be posted to PO Box 11849, Centurion, 0046 after you have completed the online form below.

Click Here To Register