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Running a small business in South Africa? Understanding your tax duties is key to success. This guide explains taxes for sole proprietors, partnerships, close corporations, and companies, and what reliefs or benefits you can claim to boost your growth.

What is Tax for Small Businesses?

Taxes are payments businesses make to SARS (South African Revenue Service) based on their income. Whether you are a sole trader, partnership, private company, or close corporation, you must register for tax within 21 business days of starting your business.

Business Types and Their Tax Rules

Sole Proprietorship

• You and the business are the same.

• Profits are taxed as your personal income.

• Advantage: Easy to set up.

• Disadvantage: Unlimited liability – personal assets can pay business debts.