The tax created for micro businesses is called Turnover Tax, and it aims to assist smaller businesses to meet their tax compliance obligations.
Rules for Turnover Tax
To meet the requirements of Turnover Tax, your business would have an annual turnover of R1 million or less.
The Turnover Tax system replaces these taxes:
- Income tax
- Provisional tax
- Capital gains tax
- Dividends tax
- VAT (can elect to be in the VAT system)
This table shows how the tax is applied according to the taxable turnover – and applies for any year of assessment ending during the period of 12 months ending on 28 February 2018.
Micro enterprises that will qualify:
- Individuals (sole proprietors)
- Close corporations
You still need to keep records of all sales income received, however, your expense record keeping will be greatly reduced, as it eliminates the need for detailed record keeping of deductible tax expenses.
If you want to register, you can go directly to SARS or contact us and we can assist.