Sole proprietor tax

Tax

Sole proprietor tax is an issue which raises its head when you personally run a business with a trade name and not through a company or corporation.

So, as a sole proprietor, you are Joe Black t/a Better Photo Agency, for example. That is, your business is Better Photo Agency and you are the only owner. A CC or a company does not feature in this set-up. Your letterhead typically has “Better Photo Agency” in big at the top and “Sole proprietor: J Black” in small at the bottom. No registration number is displayed, even if “Better Photo Agency” has been registered as a defensive name.

If you as an individual are registered for tax with SARS, then there is no need to register your sole proprietor business for tax as it is not a separate legal entity and cannot be registered for tax as such. You are the business and the business is you, as it were, and your business trading figures are reported to SARS as your own personal figures.

If you do not have a personal tax number then you will need to apply for one and that number is used when reporting your personal and business income.

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Sole proprietor South Africa

English: South Africa (orthographic projection)

Sole proprietor literally means “the only owner”.

A person, a company or a trust can be the proprietor of a business. For example, a company ABC Elastics (Pty) Ltd runs a business called Special Elastic Suppliers. It trades with that name and is is the owner of that business, so it can be termed the proprietor of the business, even the “sole proprietor” of that business.

But usually when we use the term “sole proprietor” we are referring to an individual human (not a company) who owns/runs a business.

In order to establish your Sole Proprietorship in South Africa, kindly follow the following procedure:

  1. Trade Name Registration – apply to register your t/a (trading as) name
  2. Tax Registration – apply for an income tax number for yourself (if you do not have one; this same tax number is used for the business because you are/own the business)

Other registrations for your sole proprietorship include:

  1. VAT Application – register your business for Value-Added Tax (if needed or if 12-month turnover is R1m or more)
  2. Annual Work – annual financial statements and tax return – after your first period of trading ending 28 February.

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VAT is a money machine for big government in Japan

LONDON, ENGLAND - JANUARY 03:  Shoppers pass a...

For years, I’ve been warning that a value-added tax (VAT) would be a terrible idea. Simply stated, politicians would have no reason to control spending or reform entitlements if they had a new source of tax revenue.

In this video, I explain why this European-style national sales tax is a money machine for bigger government.

via Just as Happened in Europe, the VAT Is Becoming a Money Machine for Big Govenrment in Japan « International Liberty.

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Accounting firms can help Singapore stay competitive

Teo Chee Hean

Accounting firms can play an important role in helping Singapore stay competitive in the financial services industry while also devising innovative business models, said Deputy Prime Minister Teo Chee Hean on Monday.

Mr Teo pointed out that the accountancy sector, with its adherence to international standards and regulation, will play a crucial role in helping other businesses grow while also thriving as an industry in its own right.

‘We want Singapore to be a global accountancy hub that offers high-value-added professional accountancy services, that is a home for global accountancy organisations and serves as a thought and practice leader in the design and implementation of global accounting practices and standards,’ he said.

Singapore aims to raise the accounting sector’s contribution to the economy from 0.4 per cent now, to 1 per cent over the next 10 years.

via Accounting firms can help S’pore stay competitive: DPM Teo.

Free online software accounting services

Image representing Wave Accounting as depicted...

Image via CrunchBase

Toronto-based Wave Accounting thinks it can run a profitable business without charging customers a cent for its full-range of online software accounting services.

Friday’s announcement of the $5 million in Series A financing round, led by Charles River Ventures (CRV), with the participation of OMERS Ventures, is definitely a hopeful sign for the Canadian startup. This round comes on top of a $750,000 in funding obtained from the Federal Economic Development Agency for Southern Ontario in September.

Wave offers its services at no cost to its customers, so how does it monetize its services? It generates revenue by offering sophisticated, ultra-targeted advertising and group-buying opportunities.

Once the customer is logged into its Wave account, a screen labelled Business Savings is featured. This featured page offers at discounted prices services from other companies. The customer is asked to choose from a range of paying services,  ranging from business cards, Web hosting, to credit card processing services and more, at a discounted price.  If the customer chooses to take advantage of any of these opportunities, Wave Accounting gets paid a percentage or call it a commission, by the supplier.

Advertising partners who have signed up to date include giants, such as American Express, Dell and Grand & Toy, among several dozen.

With no shortage of online accounting software on the market right now, from QuickBooks Online Accounting Software to Sage Peachtree, all offering free basic package, or free trial to its customers, can a business survive a free business model? Kirk Simpson, President and CEO, believes that they can.

via Wave Accounting raises $5 Million