How to register an
external company for income tax and PAYE with SARS?
Q: I have a client whose company is based in the UK and they would like
to open up a branch in South Africa. All the revenue is received by the UK company,
however they need to employ 5 to 10 South-Africans to work at their local branch.
I would like to know what the procedure is to register this company with SARS
and which forms are required.
A: The registrations
are pretty much the same as those for SA companies. So an IT77C and EMP101 form
for companies would have to be completed and the required supporting documentation
must accompany the applications. You would have to go into a SARS branch with
the South African public officer (essentially the company representative in
South Africa). This is non-negotiable, even if you have a power of attorney.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.
MINIMUM REQUIREMENTS TO REGISTER
The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.