Income tax is levied on all income and profit that is received by the business owner, companies and organisations. This tax type is also the national government’s main source of income and is set by the Income Tax Act No. 58 of 1962. A number of taxes also fall within the income tax category, including SITE, PAYE and Provisional Tax. To give you more of an understanding of how income tax works and how registration is done, PATC offers some helpful guidelines on one of the most common types of business tax services performed by accountants, including the following:
- Income tax assessment is done over a period of 12 months – for individuals and trusts, this is done from 1 March until 28/29 February of the following year. For companies, the assessment period is the relevant financial year.
- The Tax Season for returns starts on 1 July every year, and deadlines for the submission of returns vary according to the type of tax payer – non-provisional taxpayers must submit by the last working day of September if submitting via post, or the last working day of November is done electronically; provisional taxpayers have until 31 January and companies must submit within 12 months after the financial year end.
- All individuals and business receiving income need to register for income tax by law, but only those who have remuneration over R120 000 and/or have business of more than one income need to submit an income tax return. If you receive less than this amount but from more than one employer, then you will need to submit a tax return.
While the process has become far more simple thanks to eFiling, accounting companies make your life simpler by handling all aspects of income tax on your behalf. Contact PATC today to learn more about income tax and other business tax services that we offer.