Do I have to pay provisional tax for my company and myself?
By Evan Robinson · Updated
I have paid provisional tax for my small business and taken the profits after tax for personal use. Will I have to pay provisional tax as an individual for that income?
Is the small business registered as a company?
Yes it is registered
The profits are either declared to you as a salary in which case you will not have to register as a provisional taxpayer, but your salary will be taxed each month where the company must pay over PAYE. The company will get a tax deduction for this.
Otherwise the profits are taken as a dividend and the company will withhold 15% before paying it to you and pay that to SARS. In this case you will not register as a provisional taxpayer either, but the business does not receive a deduction.
Otherwise the profits are taken as a dividend and the company will withhold 15% before paying it to you and pay that to SARS. In this case you will not register as a provisional taxpayer either, but the business does not receive a deduction.