AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A new South African company does not apply separately for an income tax number: SARS registers companies for income tax automatically through a direct interface with CIPC. It must register as an employer within 21 business days of becoming one, unless no employee is liable for normal tax, and must register for VAT within 21 business days once taxable supplies exceed R2.3 million in a 12-month period (the threshold SARS applies from 1 April 2026).
Income tax: it comes with the CIPC registration
When a Pty Ltd is registered at the Companies and Intellectual Property Commission, SARS says the company is automatically registered for income tax through a direct interface with CIPC, and no separate income tax registration is needed. The income tax reference number appears on the company's SARS profile once the link has run. The practical task for a new director is to get access to it.
- Register the company on SARS eFiling as an organisation, using the company registration number.
- Make sure the person registering has authority. SARS works through a registered representative for the company, so expect to show the director's identity and proof of the mandate.
- Check the registered details (address, financial year end, bank account) and correct them under SARS Registered Details.
- Note the income tax reference for bank, client and tender forms.
A Nigerian director without a South African ID uses a passport. If the passport name differs from the CIPC record, fix CIPC first; SARS details flow from it.
Provisional tax from the first year
SARS says every company, apart from body corporates, share block companies and public benefit companies, must submit provisional tax returns (IRP6). Payments fall due six months into the financial year and at year end, with an optional third payment six months after year end. A company that has not traded still has the obligation to file, so diarise both dates on the day the company is formed.
Employer registrations: PAYE, UIF and SDL
SARS's employer guide for the 2025 tax year says an employer must register for employees' tax within 21 business days of becoming an employer, unless none of its employees is liable for normal tax. Registration is through eFiling or at a branch. Directors who are paid a salary count; so do family members on the payroll.
| Registration | When it applies (SARS guide, 2025 tax year) |
|---|---|
| PAYE (employees' tax) | Within 21 business days of becoming an employer, unless no employee is liable for normal tax |
| UIF | Employer and employee each contribute 1% of remuneration, on earnings up to R17,712 a month (ceiling from 1 June 2021) |
| SDL | Not required where total leviable remuneration over the next 12 months will not exceed R500,000 |
| Monthly return (EMP201) | Payment within seven days after the end of the month; the last business day before, if that day falls on a weekend or holiday |
Employers that are not registered with SARS for PAYE, or not liable for SDL, register for UIF with the UI Commissioner instead. COIDA, for workplace injury cover, is a separate registration with the Compensation Fund. See hiring your first employee in SA for the full sequence.
VAT: compulsory at R2.3 million
SARS's VAT registration page, updated in October 2026, says registration is compulsory when taxable supplies exceed R2.3 million in any consecutive 12-month period, and that it is applying the increased threshold with effect from 1 April 2026. The application must be made within 21 business days from the date the threshold is, or will be, exceeded.
Voluntary registration is possible from R120,000 of taxable supplies, tested either on an average of about R4,200 a month over past months or by a written contract worth more than R120,000 over the next 12 months. Registering early can help a business that sells to VAT-registered customers or buys a lot of stock, but it brings two-monthly returns and record-keeping. For the detail, see the SARS VAT threshold for a small business.
Worked example
Example only. A new Pty Ltd importing Nigerian foodstuffs sells R200,000 a month from its fourth month. At the end of month 14, its last 12 months total R2.2 million (11 trading months x R200,000), below the threshold. In month 15 the total reaches R2.4 million (12 x R200,000), above R2.3 million. Because SARS's test covers supplies that are or will be above the threshold, the director should apply as soon as it is clear month 15 will push the total over, not wait for the year end.
What to check first
- The company appears on eFiling with the correct financial year end.
- A public officer is in place; see the SARS public officer for a foreign-owned company.
- The first provisional tax dates are in the calendar.
- Payroll is registered before the first salary is paid, not after.
Where Pryme fits
SARS registrations are in rand and sit with your South African bank. If the company also earns in dollars, pounds, euros or naira, a Pryme Business Account keeps each currency separate with local details, which keeps foreign income easy to trace at year end. Business accounts come with a Finance agent that prepares work such as reconciliations; a person approves above a set ceiling and actions are recorded. Outside Nigeria, Pryme's financial activities are carried out through regulated partners.
Questions people ask
Do I need to register my new company for income tax with SARS?
No separate registration is needed. SARS says CIPC-registered companies are automatically registered for income tax through a direct interface with CIPC.
How do I find my company's tax number?
Register the company on SARS eFiling as an organisation with its CIPC registration number; the income tax reference shows on its SARS profile.
When must a new company register for VAT in South Africa?
Within 21 business days of taxable supplies exceeding, or being expected to exceed, R2.3 million in 12 months, according to SARS's page updated October 2026.
When must I register for PAYE?
Within 21 business days of becoming an employer, unless none of the employees is liable for normal tax, according to SARS's 2025 employer guide.
Sources
- SARS: Corporate Income Tax (updated 19 August 2026) · accessed Oct 2026
- SARS: Register for VAT (updated 8 October 2026) · accessed Oct 2026
- SARS: Guide for Employers in respect of Employees' Tax, 2025 tax year (PAYE-GEN-01-G19) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.