Introduction

Starting a business is an exciting venture, but navigating tax compliance can be challenging. Understanding tax obligations early on helps startups avoid financial setbacks. Marwick & Company provides tailored tax solutions for startups, ensuring compliance while focusing on growth​.

Key Tax Obligations for Startups

1. Company Registration and Tax Number

• Startups must register with the Companies and Intellectual Property Commission (CIPC).
• SARS automatically issues a tax number upon registration.

Our team at Marwick & Company assists with company registrations and ensures tax compliance from day one​.

2. Provisional Tax for Startups

Startups must pay provisional tax twice a year to manage cash flow efficiently. We provide expert guidance on provisional tax estimates and payments​.

3. Employees’ Tax (PAYE, UIF, SDL)

Startups with employees must comply with:

• PAYE (Pay-As-You-Earn): Tax deductions from employee salaries.
• UIF (Unemployment Insurance Fund): Contributions for employee protection.
• SDL (Skills Development Levy): Funding for workplace training initiatives.

Marwick & Company ensures startups correctly set up their payroll tax systems​.

Leveraging Tax Incentives

• Small Business Corporation (SBC) Tax Rates: Reduced corporate tax rates for qualifying small businesses.
• R&D Tax Incentives: Deductions for innovation-driven businesses.

We help startups assess their eligibility for these tax benefits, optimising tax planning from the start​.

Steps to Stay Compliant

1. Accurate Record-Keeping: Maintain documentation for tax deductions and compliance.
2. Understand Deadlines: Avoid penalties by meeting SARS submission deadlines.
3. Engage a Tax Consultant: Partnering with Marwick & Company simplifies tax management and ensures full compliance​.

Conclusion

Tax compliance is essential for startups to scale successfully. With expert guidance from Marwick & Company, businesses can focus on growth while remaining fully compliant​.