© JG Electronics 2010-2024
jgelectronics.com
011 789-6033
Taxes and other Admin This section will briefly tell you about some of the regulatory “taxes” that you have to pay, once registered as a company. As these may change from time to time you should confirm these will your accountant when you register your business. 1. UIF – Unemployment insurance Fund – the company pays 1% and the employees pay 1% of their gross salary (deducted from their salaries by the employer). 2. SDL – Skills Development levy – A percentage of total salaries paid for the month – theoretically this “tax” can be claimed back to use for the development of skills of the employees, through sending them on additional training courses. Unfortunately claiming these funds (as with most government incentives) is a long and painful process. 3. PAYE – Essentially income tax on your earnings – Every year the amount below which you don’t pay anything is increased in line with inflation. PAYE, SDL, UIF are payable by 7 th of month, for the month preceding. Paying late means a penalty on the money you would have paid + interest. 4. Workman’s Compensation – Another one of those funds to “aid” the worker in the case of an accident at work – must register if you have more than 1 worker - this is basically a “medical” insurance policy administered by the state. They are great at taking your money but not great at paying out in case of a claim. 5. VAT – If your total invoiced sales are over R 1 Million per year you have to register for VAT but if your sales exceed R 50,000 you can voluntarily register. The advantage of registering is that you “claim” back the VAT on all your purchases (including stock), and most expenses (except entertainment and fuel) when you sell the finished product, your customer (in the case of corporate clients) also gets to claim the VAT that you charge them. Many corporates won’t trade with you if you are not VAT registered. The only disadvantage is that it’s more paperwork to do (but doing this admin, forces you to keep your paperwork up to date) and you will probably have to visit a SARS office in person for them to verify you are legit. 6. BEE and Employment equity – Smaller companies (SMME’S) don’t have to worry about BEE but can get an affidavit regarding their BEE status if they want to. Employment equity also doesn’t apply as long your turnover is below a certain threshold (under 50 staff and R 60 Million turnover).
4
Made with FlippingBook - professional solution for displaying marketing and sales documents online