0800 007 269 (Toll Free)
Get Compliant from Anywhere, Easy and Fast!
0800 007 269 (Toll Free)

Get Compliant from Anywhere, Easy and Fast!

0800 007 269 (Toll Free)
Get Compliant from Anywhere, Easy and Fast!

Table of Contents

  • Tax & Accounting

Tax Savings in South Africa: The SmartTax Tool will determine if you can save on your taxes as a business in South Africa

Free SmartTax Savings Tool South Africa

Use our Smarttax tool today, anywhere in South Africa, and determine if you can unlock tax savings.

The Free SmartTax Tool highlights the tax savings you may be missing out on as a business owner. It takes less than 5 minutes to complete. Test the tool now OR watch a video on how it works.

Try NOW
How it Works

The tool focuses on the two areas where most businesses in SA are losing money.

Nr.1 - Incorrect Expense Allocation


83% of the small businesses we work with start a business without registering a business bank account. As they start trading, they pay for many business expenses through their personal bank accounts - even though many of these expenses should be deducted from their taxable business profit. Most businesses can save more than R16k per year doing this correctly.

Nr.2 - Tax Deadlines Penalties


Small businesses frequently miss the SARS deadlines for submitting its IRP6 and ITR14 Tax Returns, leading to penalties and admin fees from SARS. From 2024 SARS has started to enforce these regulations with efficiency. Most businesses can save more than R5k per year by doing this on time.

The SmartTax Tool - try it for Free!

The SmartTax Tool shows you how much you can potentially save in taxes each year – if you do your accounting correctly and on time. See it as a possible Tax Deduction Calculator.

This is only a rough estimation – our Tax Accountants will have to do a formal “Free Tax Savings Review” for you before we can do an official Tax Saving Calculation at SARS for you. If you’re happy with our calculation, we’ll continue with your SARS Submission on your behalf.

The SmartTax Tool takes less than 5 minutes to complete.

Get my Tax Savings Report

The Process


Step 1: Use the Free SmartTax Tool below.
Step 2: Free Custom Tax Savings Review (optional).
Step 3: SARS Submission (optional).

Our Tax Accountants:


Our SAIT Registered Accountants stay up to date with all the latest regulation changes at SARS. They ensure that over 1000+ of our Tax and Accounting clients' tax submission are done in the smartest way.

expert tip

Expert Tip: Maximise your company's profit with our easy-to-use SmartTax Tool - designed specifically for South African businesses. It takes less than 5 minutes.

How the SmartTax Tool Works

The “SmartTax Tool” for companies in South Africa, is a simple yet powerful tool designed to help businesses estimate potential tax savings in under 5 minutes!

You don’t need to be a financial wizard to understand or use the company tax tool South Africa.

Share this tool with your friends, family and colleagues so they can also get the benefit. It is 100% free after all.

Here’s a step-by-step guide on how it works:

  • Input Requirements:
    • Enter the SmartTax Tool requirements such as your project profit and expenses that are business-related but go through your account.
  • Functionality:
    • The SmartTax Tool computes the estimated tax savings by comparing current taxable income with adjusted figures after considering the updated expenses which are present in your account.
  • Benefits:
    • This tool saves you significant time and illustrates what you can save through efficient tax planning. Allowing you to save money monthly which can be spent on growth!
  • Data Privacy:
    • All information entered is secure and confidential.

SmartTax Tool Explainer Video

The explainer video below which shows you have to use the SmartTax Tool effectively. Try it today to determine if you can potentially tax savings waiting for you.
Play Video about Use our SmartTax tool today to determine if you can access tax savings in South Africa

What happens after I used the SmartTax Tool?

Check your INBOX for your Tax Savings Estimation.

IMPORTANT DISCLOSURE: This SmartTax Tool gives you an estimate of where you may be able to save on your business taxes, but SARS retains sole discretion over your final tax charges and penalties. Company Partners will not be held liable for any amounts generated by this tool. These calculations are all estimates of potential savings based on the information you have provided, and the average business expenses typically processed through personal bank accounts. We also estimate the penalties you may face for late tax submissions to SARS - this tool does not pull the actual numbers from SARS. For an accurate tax savings estimation, your qualified accountant will need to assess your business income and expenses in depth and then submit it timely and correctly to SARS. We have SAIT Registered Accountants which can do a free 'manual tax savings review' for you at SARS if you are interested.

How most South Africans Save on Tax

Maximising tax savings involves working with your accountant – according to SARS’s guidelines – to ensure your accounting and tax submission are done correctly and on time. Here are some often overlooked tax savings areas:

Operational Costs

These are the everyday expenses required to keep a business running.

Commonly deductible expenses include:

  1. Rent: The cost of leasing office space to coordinate security operations, manage personnel, and conduct client meetings. For example, renting an office in a business district to be accessible to clients.
  2. Utilities: Essential services like electricity, water, and internet are required for daily operations. For a security company, electricity powers monitoring equipment and office systems, while internet services facilitate communication and reporting.
  3. Office Supplies: Items used in daily administrative tasks, such as paper, pens, and printer cartridges. These are necessary for documentation, reporting, and communication within the company and with clients.
Get Tax Savings at Company Partners anywhere in SA

Eligible Deductions

Businesses can deduct a variety of expenses from their taxable income (thereby reducing their taxes). Below is an example of typical expenses a Security Company can include in their deductions:

Expense Type Description Practical Examples
Operational Costs Day-to-day expenses necessary for running the business. Rent for office space, utilities like electricity, and office supplies.
Employee Salaries  Wages paid to employees, including security personnel and administrative staff. Monthly salaries, overtime payments, and bonuses.
Training Costs Expenses related to improving staff skills and qualifications. Security guard certification courses with PSIRA, and first aid training.
Equipment Depreciation Deduction for the wear and tear of assets over time. Depreciation on surveillance equipment, and company vehicles.
Marketing Expenses Costs incurred to promote the business and attract clients. Advertisements in local newspapers, and online marketing campaigns.
Insurance Premiums are paid for business insurance policies. Liability insurance, vehicle insurance for company cars.

Tax Incentives

These are special deductions, credits, or exemptions offered by SARS to encourage specific business activities, like hiring new employees.

Consider SBC Status:

By qualifying as a Small Business Corporation, a security company can benefit from reduced tax rates, potentially saving thousands annually (refer to the above calculation to see a great practical example of savings).

Employment Tax Incentives (ETI):

By hiring eligible employees, a security company can claim tax incentives, lowering overall tax liability and encouraging job creation within the company. The employment tax incentives in their current form are available until 2029

Get Tax Savings at Company Partners anywhere in SA

Other, more advanced expenses

The below expenses we would recommend are discussed with a professional accountant or tax specialist to ensure it is implemented correctly.

Net Operating Losses:

If a security company incurs losses in a given tax year, these losses can be carried forward to offset taxable income in future years. This helps reduce future tax liabilities and can be a strategic tool for managing cash flow.

Home Office Expenses:

For security companies with staff working from home, expenses related to maintaining a home office, such as utilities, internet, and rent, are deductible. The deductible amount is typically based on the percentage of the home used for business purposes.

Training and Start-up Costs:

Expenses incurred during the initial setup of the company, including training for staff and administrative costs, can be claimed as deductions. This includes costs for training programs that improve skills relevant to the company’s operations and any initial investment in setting up the business infrastructure.

Don’t forget to claim your Free Tax Savings Consultation with a Tax Expert Today!

Claim Your FREE Consultation now!

Company Structure

This refers to the legal setup of a business, such as whether it’s a sole proprietorship, partnership, or corporation (Pty). The structure can affect how much tax the business pays, the level of personal liability the owners face, and how easy it is to raise capital.

Forming a company can optimise tax rates, especially when managing payouts between salary and dividends.

Impact on Taxes Savings

By effectively managing your tax obligations, you can improve not only cash flow but also reinvest extra profits (e.g. appointing more security guards to take on more customers) and reduce the overall tax burden of your business.

This approach is beneficial for small businesses striving to grow in a competitive market.

Understanding Company Tax in South Africa

Working out how much tax your company owes can be a real headache. With so many rules and regulations, it’s easy to get lost.

This guide aims to simplify things, explaining different tax aspects in plain English, as far as we can!

Our experts assist with company tax in south africa at Company Partners

SA Corporate Tax Rate

The standard tax rate for companies in South Africa is 27%. This rate applies to most corporations, making it crucial for businesses to understand how to calculate their taxable income accurately.

However, there are different tax rules for various types of companies. We will discuss a few below.

The use of tools such as a tax deduction calculator can assist businesses unlock growth through its positive impact on cashflow.

You can find more information, from SARS on tax types here.

Small Business Corporations (SBCs)

Small Business Corporations (SBCs) in South Africa benefit from reduced tax rates if they meet certain criteria.

This includes but is not limited to having only natural person as a shareholder and a gross income not exceeding R20 million per year.

For the tax years ending between 1 April 2024 and 31 March 2025, the rates are:

  1. 0% tax on the first R 95,750 of taxable income
  2. 7% tax on income above R 95,750 up to R 365,000
  3. R 18,848 + 21% tax on income above R 365,001 up to R 550,000
  4. R 57,698 + 27% tax on income exceeding R 550,001

Tax Calculation for a Security Company - Example

Below we will demonstrate how a security company can benefit from using the Small Business Corporation (SBC) tax rates from SARS.

SBC tax rates for different income levels, showing the company how much tax, they owe to SARS. This helps the business see where they can save money and ensure they are taking full advantage of available tax benefits.

Company Details:

  1. Name: CP Security
  2. Type: Security Services
  3. Gross Income: R 1,500,000
  4. Taxable Income: R 600,000
Make use of our tax deduction calculator, perfect for security companies in South Africa, looking to save on taxes

Tax Calculation for SBC:

First R 95,750: 0% tax

Next R 269,250 (R 365,000 – R 95,750): 7%
Tax: R 269,250 x 7% = R 18,848

Next R 185,000 (R 550,000 – R 365,000): 21%
Tax: R 185,000 x 21% = R 38,850

Above R 550,000 (R 600,000 – R 550,000): 27%
Tax: R 50,000 x 27% = R 13,500

Total Tax Payable:
R 18,848 + R 38,850 + R 13,500 = R71,198

This calculation illustrates how the tax is applied to benefit from the lower rates available to SBCs.

Accurate Record-Keeping

It is vital for businesses to maintain detailed and accurate financial records. This practice not only ensures compliance with SARS regulations but also helps identify all possible tax deductions, such as depreciation, assets, salaries, and other business expenses.

Granted, keeping records and maintaining high admin standards are not the priority for most business owners. You will thank your efforts when it comes to tax season, as there will be no need to run around gathering documents.

If your cash flow allows you can also consider Monthly Accounting Services, to have everything managed by an Accountant. You might have already searched for “tax consultation near me” without any success. Our services start from R1990 per month for your tax and accounting needs.

We recommend you use the SmartTax Tool to determine if you can free up some cash flow today!

Remember, not having your tax documents in order can result in SARS fining you 10% of your turnover.

Proper documentation and consultation with a Tax Professional are essential to ensure these deductions are accurately reported and maximised.

Conclusion

It’s time to take control of your company’s tax obligations and uncover potential savings. The SmartTax Tool (powered by Company Partners) is a powerful tool designed to help you estimate your tax liability accurately and find ways to reduce it.

We also offer a Free Consultation with a Tax Specialist to discuss your results and explore further optimisation opportunities. No matter where you are in South Africa, if you’re searching for “tax consultation near me”, we can assist from anywhere in South Africa.

Test our company tax calculator south africa if you are unsure about your potential tax savings.

Get expert accounting services, speak to a specialist for free!

Contact us today!

Recommended for you

Sign Up to our Newsletter

Send via WhatsApp