ITR12 for foreign personal service providers possible?

By Marc Sevitz · Updated 1 July 2013

Hi Tim, I am running a sole proprietorship that is registered in Europe and provides consulting services to South African companies. My client classified my company as a personal service provider and started to withhold 28% tax. I registered as a tax payer (IT77) and created a SARS efiling account for organisations. The efiling account only offers me the option to submit an ITR12 return. The tax calculator assigns the normal personal income tax and not the flat 28% for personal service providers. I wonder if there is a way of submitting the tax return as a personal service provider (and being liable for the 28% tax rate) without registering as a company? Thanks!

TaxTim Marc said:
1 July 2013 at 22:52

Unfotunately you would have to register as an "entity" and complete the form as a personal service provider. Your ITR12 only caters for individuals and cannot be altered. In South Africa you don't register a sole proprietorship.

Provisional Tax

Dividends

SARS & eFiling