Section 22 of the Tax Administration Act states that any person who's liable for income tax must register as a taxpayer within 21 days of becoming one.
This also applies to companies. If you miss this deadline, you could face a non-compliance penalty.
Now, most new companies automatically get a tax number when they register with the Companies and Intellectual Property Commission (CIPC). So before you start the application process, check with SARS to see if there isn't already a tax number for your company.
If you haven't registered your business for income tax yet, you must do so A.S.A.P.
To ensure you get your registration right, we're revealing four types of documents you need when you apply for income tax.
But first, you need to know which form you have to use...
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If you're registering your company for corporate income tax, use this form
To register your company for income tax, you'll use an IT77 to apply. But there are two different types of applications based on what type of taxpayer you are. These are:
• IT77C for companies and CCs; and
• IT77TR for Trusts.
As a company, you need to complete an IT77C. And there are specific supporting documents you must submit with your form. These will ensure your information is correct and SARS can verify it.
Let's look at the four types of documents you'll need in detail.
You'll need these four types of documents to complete your IT77C and register your company or CC for tax
1. Certified copies of the founding documentation for your company or CC.
• For a company, you need the 'Notice of incorporation' (CoR14.1), 'Registration Certificate and Certificate of Confirmation of Incorporation' (CoR14.3) and your adopted 'Memorandum of Incorporation' (CoR 15.1).
• For a CC, you need the 'Founding Statement' (CK1) or 'Amended Founding Statement' (CK2).
• You can also submit a recent download of the CIPC certificate containing all of the above details. (You can download the certificates from the CIPC website but you must be a registered CIPC customer and you'll pay R30 per certificate downloaded.)
2. Certified copies of the IDs or passports of each director and shareholder/member, as well as the public officer (this is your representative taxpayer and the person who handles your business taxes).
3. One of the following documents confirming banking details:
• An original bank statement stamped by the bank. This can't be older than three months and it must clearly show the name of the account holder, branch number and account number; or
• If it's a new account and you can't produce a bank statement, SARS will accept an original letter from the bank (on an official letterhead). This must have an original bank stamp reflecting the date you opened the account and confirming the name of the accountholder, branch number and account number.
SARS won't accept applications that don't include banking details and the bank account must be in the taxpayer's name.
4. A copy of any documentation that confirms your business' address.
You have a legal obligation to register your company for income tax. Use these four documents to get through the registration process smoothly so you don't incur penalties.