Small Business - Administrative service
By Marc Sevitz · Updated
I started a small business where I provide administrative services to one company at a cost of R10 000 per month. What will the tax implications be? Will I be able to register for turnover tax or what would be the best option?
Is bookkeeping/accounting provided as part of your services?
Yes it is part of the service.
You cannot register for turnover tax as the Tax Act specifically excludes a person, from registering as a micro-business for turnover tax, that provides a "professional service" which includes a service in the field of accounting.
Assuming that you plan to freelance and work as an "independent contractor" and take on other clients, you would need to register for provisional tax. Please read our blog on provisional tax.
What is Provisional Tax? How and when?
Remember, you can deduct all expenses incurred in the production of your income.
Assuming that you plan to freelance and work as an "independent contractor" and take on other clients, you would need to register for provisional tax. Please read our blog on provisional tax.
What is Provisional Tax? How and when?
Remember, you can deduct all expenses incurred in the production of your income.