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How much tax do I have to pay as a self employed buinessmen?

Posted 19 July 2013

Hey Tim, awesome site and very helpful info. I am not sure of my tax number, I was out the country for a few years and before that I was self employed and now again I am self employed. I last worked for a company n SA probably 10 years ago.

We have started 3 businesses since we have been in SA (my wife and I) and the first 2 didn't really get going at all and cost much more than they made which wasn't much at all. They were both Close Corporations but we never got to the stage when we got a bookkeeper in to do anything. The 3rd and most recent business is being run much more like a sole proprietor. I only work with my wife but she is from England and doesn't have a work visa just an accompany spousal visa and we occasionally work with other people who do what we do. Which by the way is digital marketing and web design. It is up and down and we don't ever get a regular or fixed amount monthly. Also from the last 2 businesses we have been in a lot of debt so are just starting to catch up a bit and pay rent regularly etc, What we haven't done is sort out any tax, I have no idea if I even earn enough to pay tax or how to go about finding out. The business has started to actually do a bit better more consistently but I still don't draw a salary and my wife and I just about survive off of it.

I guess the main question is at what stage or earning amount do I have to pay tax personally and also as a business.

TaxTim TaxTim says:
23 July 2013 at 10:41

You would each need to be earning more than R67111 per annum in order to start paying tax. Given that you are trading as a sole proprietor this threshold would be applicable as well. You are taxed in your own hands because of this and would need to register as a provisional taxpayer.

What is Provisional Tax? How and when?

Remember that you can deduct all the business expenses that were incurred in order to earn the income as the tax is on the "profit" of the business.

Thanks for the complimentary words!

TaxTim says:
23 July 2013 at 11:00

Brilliant thanks for the help Tim! I will register as a provisional Tax payer and have a good look at our expenses to which are business expenses.

Thanks again

TaxTim TaxTim says:
23 July 2013 at 11:02

Only a pleasure!

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