Do I have to pay provisional tax for my company and myself?

By Evan Robinson · Updated

Don

Don said:
8 July 2015 at 10:50

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?
TaxTim Evan

TaxTim Evan said:
8 July 2015 at 11:06

Is the small business registered as a company?
Don

Don said:
8 July 2015 at 12:42

Yes it is registered
TaxTim Evan

TaxTim Evan said:
8 July 2015 at 12:50

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.