Mahuntsi Accounting Services

Before entering into a payment arrangement with SARS, make sure all outstanding returns are submitted and apply for penalty remission. In many cases, the debt is inflated due to estimated assessments and accumulated penalties. Once the correct returns are filed, SARS can reassess and possibly reduce the amount owed.

Marketing is the Key to any Profits

A lot of business owners assume that any money they pay themselves from the business is a salary.
That’s not always true — and this misunderstanding causes serious tax and compliance problems.

Here’s the truth 👇

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If You’re NOT Registered for PAYE & UIF, That Money Is NOT a Salary

For money to be classified as a salary, the following must be in place:

✔ The company must be registered for PAYE with SARS
✔ The company must be registered for UIF (and SDL if applicable)
✔ Monthly payroll submissions (EMP201) must be done
✔ Annual payroll reconciliation (EMP501) must be submitted
✔ IRP5 must be issued to the director/employee

If none of this is happening, then legally:

👉 That money cannot be called a salary.

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So What Is That Money Then?

In most cases, SARS and accountants will classify it as a:

➡️ Loan to Director

This means:
• The company is seen as lending money to the director
• The director now owes the company
• It is recorded as a liability in the company’s books

Even if the money was used for personal expenses, groceries, school fees, or rent — without payroll registration, it’s still not salary.

We are opening on the 15 January 2026.