What is a business tax profile?

When you register as a taxpayer, a personal tax profile will be created for you. If you have a business, you will need to register this as well.

We have a look at what a business tax profile is, and we consider how this differs from your personal tax profile.

Tip: If your taxes are already in order, consider organising your debt too. Click here for more.

Business tax profile versus personal tax profile

Zwelibanzi Phiri, managing director at Capnovation, explains, “A business profile is for entity taxes while a personal profile is for individual taxes. In South Africa, there are different varieties of eFiling profiles and it’s vital to be registered for the right one.

“A personal tax profile will focus on the taxes that affect an individual,” Phiri says. “This normally includes Pay as You Earn (PAYE), UIF, and SDL. There are also additional taxes that high net worth individuals pay.

“A private business profile only focuses on the taxes that directly link to the business," he continues. "These taxes include – but are not limited to – income tax, value-added tax, employees’ tax, and levies and duties,” says Phiri.

He adds that, in some cases, a business profile and personal profile can be interlinked.

READ MORE: Should you be taxed on your end of year bonus?

Juanita van der Merwe, manager of tax compliance at AJM Tax, notes that with business tax profiles, transfers are more complicated.

“When you request the transfer of a business tax profile, you will need to know who the current representative of the business is, in order to attend to the authorization of the transfer of the profile,” she says.

“You have to enter the identity number of the current representative to continue with the authorization request.”

Phiri advises that if you are unsure about your tax status, you should contact the South African Revenue Service, or consult with a tax practitioner.

You can find out how much income tax you owe by using our tax calculator.