Tax & SARS

Paying Yourself From Your Company Doesn't Automatically Mean You're Taking a "Salary"

There's an important difference between money received as salary, as a dividend, and other forms of payment — the tax treatment differs depending on the nature of the payment, so labelling everything as "salary" or "drawings" isn't accurate.

Owner-managed businesses often mix personal and business finances. Understanding the legal and tax nature of payments to yourself can prevent major accounting and tax problems down the line.

Source: SARS

Frequently Asked Questions

Can a company director receive a salary?

Yes, subject to the applicable employment and tax rules.

Is a dividend the same as a salary?

No — they are different types of payments with different tax treatment.

Why should owners keep business and personal money separate?

It makes accounting, tax compliance and financial management much easier.

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