After following our advice, income tax to the amount of R 283 671 were saved by a Close corporation because our firm registered the taxpayer correctly at SARS. The importance of registering a taxpayer cannot be over emphasized and the knowledge thereof is of the utmost importance. The following is some of the registration requirements:
- Must an individual be registered for provisional tax and save penalties?
- Not all dependents have to register for income tax. Special provisions are applicable.
- A nonprofit company (old section 21 Company) is not automatically exempt from paying tax. A registration has to be done.
- Certain companies/ Close corporations may be registered as a small business corporation. If one qualifies for this the saving will be for the years that one has been registered as such R94 000 per year (2014). If one’s business trades for say 15 years the saving is R1.4 m.
- Some trusts can be registered as special trusts. The rate is far lower than a normal trust.
A testamentary trust pays much less transfer costs when receiving property