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Turnover tax - Micro businesses |
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Tuesday, 17 February 2009 16:19 |
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As from 1 March 2009 a simplified turnover-based tax system will be implemented for small sole proprietors, partnerships and incorporated businesses with a turnover less than R1 million per year.
This turnover-based presumptive tax system will be elective. After joining the system, qualifying businesses will be required to remain in the system for a minimum of three years (provided they remain within the monetary threshold). Once a business has elected to migrate out of the system, it will not be able to migrate back for a period of three years. Personal services rendered under employment-like conditions and professional services will be excluded from this tax system.
| Turnover | Rates of tax | | R 0 – R100,000 | NIL | | R100,001 – R300,000 | 1% of the amount over R100,000 | | R300,001 – R500,000 | R2,000 + 3% of the amount over R300,000 | | R500,001 – R750,000 | R8,000 + 5% of the amount over R500,000 | | R750,001 – R1,000,000 | R20,500 + 7% of the amount over R750,000 |
Source: Pastel 2009/2010 Tax guide
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Last Updated on Tuesday, 17 February 2009 16:22 |