How To Get Tax Number Business South Africa
A practical guide to getting a business tax number in South Africa what a business tax number is, why your company needs one, how to register with SARS on eFiling or at a branch, what documents are required, and what your tax number unlocks once you have it.
Every registered business in South Africa needs a tax number
A business tax number formally called an income tax registration number is issued by the South African Revenue Service (SARS) and identifies your company in the tax system. It is separate from your CIPC company registration number and separate from any personal income tax number you may already have as an individual.
Without a business tax number, you cannot file your company’s annual tax return, obtain a tax clearance certificate, apply for most government funding or grants, open certain business bank accounts, or enter into contracts with corporate and government clients who require proof of tax compliance. If you are looking for small business help in South Africa, getting your tax registration right early is one of the most important steps you can take to keep your business compliant and fundable.
Your personal income tax number is tied to you as an individual and covers your personal income, including any salary or dividends you take from your company. Your business income tax number is tied to your registered company as a separate legal entity and covers the company’s taxable income. If you operate as a sole proprietor not through a registered company SARS may allow you to use your personal tax number for your business income, but you must declare that business income on your personal return. As soon as you register a company with CIPC, that company needs its own separate tax number registered in the company’s name.
What you need before you can register for a business tax number
Before you can register your company with SARS for an income tax number, you need to have your CIPC company registration completed. SARS requires proof that your company exists as a legal entity before it will issue a tax registration number in that company’s name.
-
CIPC registration documents Your company registration certificate (COR14.3) and your memorandum of incorporation (MOI) are the primary documents confirming your company’s legal existence. These are issued by CIPC when registration is complete and are available to download from the CIPC online portal.
-
Director’s identity document A valid South African ID document or a valid passport for foreign nationals. All directors listed in your CIPC registration may need to be verified, depending on the registration method used.
-
Proof of business address A utility bill, municipal rates account or lease agreement in the company’s name or at the registered business address, not older than three months. If your business operates from your home, a utility bill at that address is acceptable in most cases.
-
Business bank account details SARS typically requests your company’s bank account details during registration to link to your tax profile. If you have not yet opened a business bank account, this can be updated later, but having it ready speeds up the process.
-
Company contact details A valid email address and phone number for the company, which SARS will use for correspondence, notifications and verification.
How to register your business for a tax number step by step
There are two ways to register your company with SARS for an income tax number: online through the SARS eFiling portal, or in person at a SARS branch. For most small business owners, eFiling is the faster and more convenient option.
Method 1 Register online through SARS eFiling
The SARS eFiling portal at sarsefiling.co.za allows you to register your company for income tax online without visiting a branch. This is the recommended method for most small businesses.
- Step 1 Create a SARS eFiling account If you do not already have a personal eFiling account, create one at sarsefiling.co.za using your personal ID number and contact details. If you already have a personal eFiling account, you can add your company to the same account.
- Step 2 Add your company as a taxpayer Once logged in, navigate to the “Organisations” section and select “Register New” to add your company as a new taxpayer entity. You will need your company’s CIPC registration number and the director’s personal tax number to proceed.
- Step 3 Complete the IT77C registration form SARS uses the IT77C form for company income tax registration. This form captures your company’s details, registered address, directors, and business banking information. Complete all fields accurately errors delay registration.
- Step 4 Upload supporting documents Upload your CIPC registration certificate, the director’s ID document and proof of business address when prompted. Documents must be clear, legible and in PDF or image format.
- Step 5 Submit and wait for confirmation Once submitted, SARS will process your registration. In most cases, your income tax number is issued within three to seven business days and sent to your registered email address. In some cases, SARS may request additional verification respond promptly to avoid delays.
Method 2 Register in person at a SARS branch
If you prefer to register in person, or if your eFiling registration encounters a problem that requires manual resolution, you can visit any SARS branch with your documentation. SARS branches are located in all major cities and most large towns across South Africa.
| What to bring to the SARS branch | Notes |
|---|---|
| CIPC company registration certificate (COR14.3) | Original or certified copy |
| Memorandum of incorporation (MOI) | Issued by CIPC at registration |
| Director’s valid ID document or passport | Original SARS will verify at the branch |
| Proof of business address (not older than 3 months) | Utility bill, municipal account or lease agreement |
| Business bank account details | A bank statement or letter confirming account number and branch code |
| Completed IT77C form | Available at the branch or downloadable from sars.gov.za in advance |
Book a SARS branch appointment online at sars.gov.za before visiting walk-in availability is limited at most branches and queues can be very long without an appointment. Your income tax number is typically issued on the day at a branch visit if all documentation is in order.
What your business tax number is used for
Once SARS has issued your company’s income tax number, it becomes a core piece of your business compliance infrastructure. You will use it repeatedly as your business grows.
| Use | Why your tax number is needed |
|---|---|
| Annual company tax return (ITR14) | Filed annually on SARS eFiling to declare your company’s taxable income and calculate corporate income tax owed |
| Tax clearance certificate (Good Standing) | Required for most government tenders, development finance applications and many corporate supplier registrations |
| Business bank account | Most banks require your company’s tax number when opening a business account |
| SEFA and other development finance applications | A valid tax number and tax clearance are prerequisites for most formal funding applications |
| Central Supplier Database (CSD) registration | Required to register as a government supplier your tax number is part of the CSD profile |
| VAT registration (if turnover exceeds R1 million) | You need an existing income tax number before you can register for VAT |
| PAYE registration (if you hire employees) | Your income tax number is the base registration from which PAYE and other employer taxes are added |
Additional tax registrations your business may need
Income tax registration is the foundation, but depending on how your business grows, you may need to register for additional tax types with SARS. Each registration uses your existing income tax number as the base.
VAT registration
Value Added Tax (VAT) registration is compulsory once your business’s taxable turnover exceeds R1 million in any consecutive twelve-month period. Voluntary registration is permitted once turnover exceeds R50 000 per year and can be advantageous if your major clients are VAT-registered businesses, as it allows you to claim input VAT on your expenses. VAT registration is done through SARS eFiling and requires your income tax number, business bank details and proof of qualifying turnover.
PAYE, UIF and SDL registration
If your company employs staff and pays salaries, you are required to register as an employer with SARS and deduct Pay As You Earn (PAYE) tax from employee salaries. You must also contribute to the Unemployment Insurance Fund (UIF) and, if your annual payroll exceeds R500 000, the Skills Development Levy (SDL). All three registrations are done through SARS eFiling under the employer registration section and require your existing income tax number.
Provisional tax
Most registered companies in South Africa are required to pay provisional tax an advance payment of expected income tax made twice per year (February and August). The first provisional tax return (IRP6) is due six months into your company’s financial year and the second is due at year-end. Provisional tax is not a separate registration it flows from your existing income tax registration but it is a compliance obligation that many new business owners are unaware of until they receive a penalty for missing a deadline.
A lapsed tax clearance certificate, outstanding returns or unpaid tax debt can block you from government contracts, development finance applications and corporate supplier registrations at exactly the moment you need them. The same discipline that keeps your CIPC annual returns current applies to your SARS compliance treat every deadline as non-negotiable and set calendar reminders well in advance. Tax compliance is not an obstacle to growth; it is the infrastructure that makes growth possible.
How to get a tax clearance certificate once registered
A tax clearance certificate now formally called a Compliance Status letter or “Good Standing” letter on SARS eFiling confirms that your company has no outstanding tax debt, all returns are filed and your tax affairs are in order. It is required for most government tenders, development finance applications and corporate supplier onboarding processes.
- Log in to SARS eFiling Go to sarsefiling.co.za and log in to your company’s eFiling profile using your registered credentials.
- Navigate to “Tax Compliance Status” Under the “Tax Status” menu, select “Tax Compliance Status Request” and choose “Good Standing” as the reason for the request.
- Submit the request The system checks your compliance status in real time. If all your returns are filed and there is no outstanding debt, a compliance PIN is issued immediately.
- Share your PIN with the requesting party Instead of a paper certificate, SARS now uses a PIN system. You share your compliance PIN with the tender or funding body, who verifies your status directly with SARS using that PIN. The PIN is valid for a limited period.
If your compliance status request returns a negative result indicating outstanding returns or debt you must resolve the outstanding matter before a compliance PIN can be issued. Contact SARS directly or through a registered tax practitioner to understand exactly what needs to be resolved.
Tax and funding how your compliance status affects access to capital
Your tax compliance status is directly linked to your ability to access formal funding. Government grants, development finance institutions and most corporate enterprise development programmes all require a valid compliance PIN as part of their application process. A company with outstanding returns or unpaid tax debt cannot obtain a compliance PIN and therefore cannot complete these applications, regardless of how strong the business case is.
If you are planning to apply for development finance including learning how to apply for a SEFA loan make sure your income tax registration is complete, all required returns are filed and there is no outstanding debt well before you need to apply. Last-minute compliance under application deadline pressure leads to errors and delays that can cost you the opportunity entirely.
Common mistakes businesses make with tax registration
| Common mistake | What to do instead |
|---|---|
| Registering with SARS using personal details instead of company details | Your company needs its own income tax number in the company’s registered name and registration number not in the director’s personal name. Using personal details for business income creates compliance problems that are difficult to untangle later. |
| Not registering until a client or funder asks for a tax clearance | Tax registration and clearance take time. Register immediately after CIPC registration do not wait until you urgently need a compliance PIN for a tender or funding application, because the urgency will cause you to rush and make errors. |
| Not filing provisional tax returns (IRP6) | Many new business owners are unaware of provisional tax obligations. Missing IRP6 deadlines results in penalties and interest that accumulate quickly. Set a reminder for both the February and August deadlines from the date your company’s financial year starts. |
| Not updating SARS when company details change | If your company’s address, banking details or directors change, update SARS on eFiling promptly. Correspondence going to an old address or banking details being incorrect causes compliance failures that can be costly to resolve. |
| Assuming a sole proprietor can use their personal tax number indefinitely for business income | While sole proprietors can declare business income on their personal returns, any significant business income particularly once you want to access formal funding or contracts requires proper separation through a registered company with its own tax number. |
Tax rates your business needs to know
Understanding your tax obligations from the start helps you price your services correctly, set aside the right amount for tax each month and avoid unpleasant surprises at year end.
| Tax type | Rate (2025/2026 tax year) | Who it applies to |
|---|---|---|
| Corporate income tax (CIT) | 27% of taxable profit | All registered companies reduced from 28% in the 2022/23 tax year |
| Small Business Corporation (SBC) tax | Progressive: 0% on the first R95 750, then 7%, 21% and 27% on higher brackets | Companies with annual turnover under R20 million that meet SARS’s SBC criteria significantly more favourable than standard CIT |
| VAT | 15% on taxable supplies | Compulsory above R1 million turnover; voluntary above R50 000 |
| PAYE | Progressive personal income tax rates applied to employee salary | All employers paying salaries above the tax threshold |
| UIF | 1% employee contribution + 1% employer contribution (2% total) | All employers with staff on a payroll |
| SDL | 1% of total annual payroll | Employers with annual payroll above R500 000 |
Most small businesses qualify as Small Business Corporations under SARS’s criteria, which can significantly reduce your effective tax rate. To qualify as an SBC, your company must have annual gross income below R20 million, all shareholders must be natural persons (not other companies), shareholders may not hold shares in other companies, and at least one shareholder must be actively involved in the business. Speak to a registered tax practitioner to confirm whether your company qualifies and to ensure your returns are filed accordingly. For more on getting your business set up correctly from registration through to tax and banking, visit our starting a business guides section.
Frequently asked questions
When registering online through SARS eFiling with all documentation correctly uploaded, a business income tax number is typically issued within three to seven business days. In some cases it may be faster. If SARS requires additional verification or documentation, it can take longer respond to any SARS requests promptly to avoid unnecessary delays. When registering in person at a SARS branch with all documentation in order, the tax number is typically issued on the same day.
No. SARS requires proof that your company exists as a registered legal entity before it will issue an income tax number in that company’s name. Your CIPC registration certificate and company registration number are required documents for SARS tax registration. The correct sequence is: register with CIPC first, receive your registration certificate, then register with SARS for your company’s income tax number. These two steps can typically be completed within one to two weeks of each other.
No. Registration with SARS for an income tax number is free of charge. You do not pay SARS to register neither online through eFiling nor at a branch. If anyone claims to charge you a fee to register your company with SARS directly, they are either charging for their own service (such as a tax practitioner managing the process on your behalf) or the situation involves a scam. The SARS registration itself has no official fee.
Your income tax number identifies your company in the SARS income tax system and is used for filing annual tax returns (ITR14), obtaining a tax clearance certificate and other core compliance purposes. It is issued when you register for company income tax. A VAT number is a separate registration issued when you register your company for Value Added Tax either voluntarily (once turnover exceeds R50 000) or compulsorily (once turnover exceeds R1 million). You need an existing income tax number before you can register for VAT. The two numbers are different and used for different purposes on invoices, returns and compliance documents.
Operating a registered company without tax registration is a compliance violation. SARS has the authority to issue penalties and interest for failure to register and file returns. Beyond the legal risk, an unregistered business cannot obtain a tax clearance certificate, which means it cannot apply for most government tenders, development finance programmes or corporate supplier registrations. The practical consequence of not registering is that your business is locked out of every formal opportunity that requires compliance which includes most of the contracts and funding that grow a business beyond its early stage.
Most registered companies in South Africa are required to pay provisional tax. As a company, you are automatically a provisional taxpayer there is no separate registration required, but you must file IRP6 provisional tax returns twice per year (typically in August and February, depending on your company’s financial year-end). First-time company owners are often unaware of this obligation and receive unexpected penalties for missing provisional tax deadlines. Set calendar reminders for both IRP6 deadlines from the start of your first financial year and consult a registered tax practitioner if you are unsure of your obligations.
- Complete your CIPC company registration first SARS requires your company registration certificate before it will issue a business income tax number
- Gather your documents: CIPC registration certificate, director’s ID, proof of business address and business bank account details
- Register on SARS eFiling at sarsefiling.co.za and add your company as a new taxpayer entity using the IT77C form or book a branch appointment at sars.gov.za if you prefer in-person registration
- Once your tax number is issued, file your first IRP6 provisional tax return by the correct deadline set a calendar reminder for both the August and February IRP6 dates immediately
- Once all returns are filed and there is no outstanding debt, request your tax compliance PIN through SARS eFiling under Tax Compliance Status keep it current for every tender or funding application
- Review whether your company qualifies as a Small Business Corporation (SBC) if it does, the SBC tax schedule is significantly more favourable than the standard 27% corporate income tax rate
If you are still in the process of deciding what business to start, our guide on Business Ideas South Africa Low Startup Costs covers a practical list of proven, affordable business ideas across services, food, digital work and reselling with honest guidance on what each one requires to start.
With your tax number in place, the next step is getting your business banking right Do I Need Business Bank Account South Africa explains exactly why a separate business account matters, what it unlocks and how to choose the right one for your stage of business.
This guide is for general informational purposes only and does not constitute tax or legal advice. Tax rates, thresholds and registration requirements are subject to change always verify current information directly with SARS at sars.gov.za or through a registered tax practitioner before making compliance decisions.