SARS

“What is SARS?”

SARS stands for the South African Revenue Service.

It’s the official government body responsible for managing and collecting taxes in South Africa.

If you own a business, SARS is where you:

  • Register for your income tax number
  • Submit tax returns (like Income Tax, VAT, PAYE, and UIF)
  • Pay any tax you owe
  • Apply for a Tax Clearance Certificate
  • Stay up to date with your legal tax obligations

“What does SARS do for businesses?”

As a business owner, SARS is the place where you:

  • Register for income tax (required after company registration)
  • Register for PAYE if you have employees
  • Submit EMP201 returns for payroll taxes
  • Register for VAT if your turnover is above the threshold
  • Apply for Tax Clearance when needed for tenders or funding
  • File provisional and annual tax returns

Basically, SARS manages all business-related taxes.

“Do I need to register with SARS?”

Yes, once your company is registered with CIPC, it is automatically registered for income tax, and SARS assigns you a 10-digit tax number.

But that’s just the start.

Depending on your business, you may also need to:

  • Register for PAYE, UIF, SDL (if you employ staff)
  • Register for VAT (if your annual turnover exceeds R1 million)
  • Submit regular returns to stay compliant

“What happens if I ignore SARS?”

If you don’t file or pay your taxes:

  • You could face penalties, interest, or legal action
  • Your company could lose out on tenders, funding, or contracts
  • You’ll be marked as non-compliant, which can hurt your reputation

Even if your company is inactive, you still need to submit R0 tax returns to stay in good standing.

Here’s a quick example

You’ve just registered your business with Govchain. What’s next?

You’ll get your income tax number from SARS — and from there, you can:

  • Open a business bank account
  • Start submitting returns
  • Apply for tax compliance documents

Plus: To get an idea of how much tax you'll pay, consider your Turnover Threshold. Also learn about the EMP101 from.

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