The A to Z of SARS: What Every South African Business Owner Should Know

How to survive (and thrive) under the gaze of the taxman

Whether you're just starting out or have been in business for decades, one thing remains true in South Africa: SARS always wants its cut. And rightly so. But understanding how SARS works, what they expect from you, and how to stay on their good side can mean the difference between a thriving business and one constantly dodging audits.

That’s why we’ve put together this A to Z guide — a straightforward, no-fluff breakdown of the key SARS-related concepts every business owner should know.

🅰️ – Assessment

This is SARS's verdict after reviewing your tax submissions. Think of it as their official response: how much you owe, how much you’ll get back, or if everything checks out. If something looks off, this is where the trouble usually begins.

✅ Tip from MMT Financial Services: Always review your assessments. Don’t just assume SARS got it right. We can help interpret your assessment and challenge any incorrect findings.

🅱️ – Beneficial Ownership

As of recent regulations, SARS is interested not just in who the directors are, but who actually benefits from a company’s profits. If you're hiding behind layers of ownership, SARS wants to know.

📌 MMT offers full beneficial ownership filings — and we make sure your records are airtight.

🅲️ – Compliance

Compliance is more than just submitting on time. It includes accuracy, supporting documents, and proper record-keeping. Non-compliance isn’t just risky — it can shut down your business.

⚙️ MMT’s compliance packages handle VAT, PAYE, UIF, SDL, and even Workman’s Compensation.

🅳️ – Deductions

From home office costs to vehicle expenses, SARS allows many deductions — but only if they’re justified and documented. Abuse this, and you’re waving a red flag.

🧾 We’ll help you keep your deductions above board while maximising every cent you’re legally entitled to.

🅴️ – E-filing

SARS eFiling is the online platform where businesses and individuals file their taxes. It’s efficient when you know how to use it — frustrating when you don’t.

🖥️ MMT handles eFiling for all our clients, so you never have to see that “timeout error” screen again.

🅵️ – Filing Season

Filing season refers to the set time each year when tax returns must be submitted. Missing these dates leads to penalties and interest.

📆 MMT keeps all our clients in sync with filing season deadlines, so you don’t get nasty surprises.

🅶️ – Good Standing

A tax clearance certificate of good standing is often required for tenders, funding, or compliance checks. If you’ve fallen behind on any returns or payments, you won’t get one.

📜 Need to be in good standing fast? MMT has helped hundreds of businesses clean up their tax profile quickly and effectively.

🅷️ – Holding Companies

These are entities created to hold shares in other companies. While they offer advantages in ownership and estate planning, they still need to be registered and compliant with SARS.

🏢 Ask MMT how to structure your holding company for both tax and legacy benefits.

🅸️ – Income Tax Number

Every entity (individual, company, trust) must register with SARS and obtain a tax number. This is your unique identifier in the system.

🆔 Registering your company? MMT handles SARS registration as part of our company setup services.

🅹️ – Joint Ventures

A temporary business arrangement between parties, often used in large contracts. SARS still expects full disclosure and tax compliance from all involved.

🤝 We offer tax advisory services for joint ventures, construction projects, and shared ownership businesses.

🅺️ – Know Your Tax Practitioner

Many small businesses get burned by fly-by-night tax practitioners. Choose someone registered, reliable, and responsive.

👋 MMT Financial Services is registered with all the relevant bodies and fully transparent about our process, pricing, and deliverables.

🅻️ – Late Submission Penalties

SARS doesn’t play. If you miss a deadline, even by a day, you may be hit with penalties. And they compound.

⏰ We send reminders, follow up, and even file on your behalf so you’re always in the clear.

🅼️ – Monthly Submissions (EMP201, VAT201)

Your monthly EMP201 (for PAYE/UIF/SDL) and VAT201 are non-negotiables if you’re an employer or VAT vendor.

📈 We run full monthly payrolls, submit EMPs, and manage your VAT filings — it’s what we do best.

🅽️ – Non-Profit Organisations (NPOs)

NPOs still need to be tax compliant, even if they don’t pay tax. And getting Section 18A status (for donations) involves a process with SARS.

🫱 We register NPOs, handle 18A applications, and keep your books clean for donor trust.

🅾️ – Objections

Not happy with an assessment or penalty? You can lodge an official objection — but there’s a time limit and you need to provide evidence.

📋 MMT can draft and submit your objections with supporting documentation that stands up to scrutiny.

🅿️ – Provisional Tax

If you earn income that isn’t taxed via PAYE, SARS expects you to submit a provisional return twice a year. Forget this, and you’ll face penalties.

💡 MMT makes sure your estimated income declarations are accurate — and always on time.

🆀 – Queries

SARS queries come via letters, emails or system notices. They might ask for supporting docs or clarifications. Ignoring them can trigger audits or automatic assessments.

💬 MMT responds to all SARS queries on your behalf, professionally and promptly.

🆁 – Refunds

If you overpay, you get a refund. But SARS may hold it up for verification. Or delay it indefinitely.

💵 We follow up on delayed refunds and help clear verification backlogs — fast.

🆂 – Supporting Documents

Bank statements, invoices, payroll records — you need them. SARS will ask for them. And they want quality scans, not blurry phone pics.

📂 MMT has a secure document management system and helps you stay audit-ready, year-round.

🆃 – Tax Clearance Pin

This replaced the old paper tax clearance. You now get a PIN from SARS that third parties (like banks or tender boards) can use to verify your status.

🔐 MMT can generate your tax clearance PINs and keep them updated so you never lose out on opportunities.

🆄 – UIF (Unemployment Insurance Fund)

Every employer must register and contribute for their workers — even domestic staff. UIF is managed via SARS and Department of Labour.

👷 We register your UIF and file monthly declarations as part of our payroll service.

🆅 – VAT

If your turnover exceeds R1 million in a 12-month period, you must register for VAT. Voluntary registration is allowed from R50,000.

🧮 MMT advises on whether you should register, helps with application, and does monthly VAT filings.

🆆 – Withholding Tax

Some payments to non-residents are subject to withholding tax. Think royalties, interest, or services rendered from abroad.

🌍 MMT handles the complexities of cross-border payments and tax treaties.

🆇 – X-factors That Trigger Audits

Big swings in income, inconsistent VAT claims, or missing IRP5s — all red flags to SARS.

🚨 Our audit-prevention service reviews your records before SARS ever sees them.

🆈 – Year-End Submissions

EMP501, IRP5 certificates, annual income tax — the big yearly wrap-up. Get it wrong, and your employees might not get refunds (or might owe unexpectedly).

📊 We take care of all year-end submissions for our payroll clients — no stress, no fines.

🆉 – Zero-Rated Items

Not all income is VAT-inclusive. Certain goods and services are zero-rated (like brown bread or exports), but misclassifying them can cost you dearly.

🛒 Need to know what you can zero-rate? Ask MMT — we’ll guide your pricing strategy.

SARS can be intimidating, but it doesn’t have to be. When you understand what they want — and stay one step ahead — your business becomes more stable, more scalable, and more respected.

And if you don’t want to deal with the A to Z of SARS?

That’s what MMT Financial Services is here for.