The Importance of Taxation Service for Small Businesses

Owning a business can be both exciting but also nerve-wracking, especially if you are new to the business world. All business must pay some sort of taxes.

Taxation in South Africa requires that taxes be paid to two government entities: the central government through the South African Revenue Service (SARS), which includes taxes like income tax, VAT, corporate tax, and fuel duty and your local government that receives grand from the central government and municipal rates.

Taxation Service

When we talk about statutory tax, we refer to Skills Development Levy (SDL), Unemployment Insurance Fund (UIF), and Pay-As-You-Earn (PAYE). These taxes must be deducted each month from to total income of all employees employed.

When it has to be paid to SARS by completing the Monthly Employer Declaration (EMP201) form. If you employed a new worker who has not been registered or has a current worker and is not registered for personal tax, registration must be done.

The taxation amount of each employee is different, but must be calculated correctly. This can get tricky, especially if you do not know the scale on which the employee is taxed.

You can ignore this either since failure to comply will lead to penalties or even more severe consequences. To eliminate all confusion and head aces, it is better to let the professionals what they do best. Hiring a taxation service is the best assist to your business.

A Taxation service can be of help with other services like Estate Planning, Corporate and personal tax consulting and the complexion of income tax returns. If your business of you as a business owner and stakeholder is part of a trust, it is better to consult a taxation service.

The scales on which trust is taxed and the individuals associated with the trust is different from normal personal tax scales. Therefore, you will surely need to get help form a professional in order to calculate that.

When hiring a taxation service, you will not have to deal with SARS directly. Getting Tax clearance certificates now becomes a breeze. You will save time and energy, allowing your small business to grow from strength to strength.

CA Management Consulting provides professional taxation services to businesses in South Africa. We specialize in audit, accountancy, and legal services.