Welcome to the web-page for Small Business. Complying with your tax obligations as a small business has been made a lot easier over the past few years. Click on the following links to find information that deals with:
Registering for Turnover Tax. Turnover tax is a simplified tax system for small businesses with a qualifying turnover of not more than R1 million per annum. It is a tax based on the taxable turnover of a business and is available to sole proprietors (individuals), partnerships, close corporations, companies and co-operatives.
Turnover tax takes the place of VAT (in the instance that you have not decided to elect back into the VAT system), provisional tax, income tax, capital gains tax, secondary tax on companies (STC) and dividends tax. So qualifying businesses pay a single tax instead of various other taxes. It’s elective – so you choose whether to participate. For
Tax Tables see below.
If you are starting out and need to register as a company, you will have to contact the Company and Intellectual Property Commission (CIPC), formerly called CIPRO. In the case where you are already registered as a company and you meet certain qualifying requirements, you may register as a small business corporation (SBC) in order to get additional tax incentives. One of the incentives for SBCs is reduced corporate tax rates, as per below table.
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 1 – 83 100 | 0% of taxable income |
| 83 101 – 365 000 | 7% of taxable income above 83 100 |
| 365 001 – 550 000 | 19 733 + 21% of taxable income above 365 000 |
| 550 001 and above | 58 583 + 28% of the amount above 550 000 |
SBC tax rates for financial years ending on any date between 1 April 2019 and 31 March 2020 – See changes from last year:
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 0 – 79 000 | 0% of taxable income |
| 79 001 – 365 000 | 7% of taxable income above 79 000 |
| 365 001 – 550 000 | 20 020 + 21% of taxable income above 365 000 |
| 550 001 and above | 58 870 + 28% of the amount above 550 000 |
SBC tax rates for financial years ending on any date between 1 April 2018 and 31 March 2019
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 0 – 78 150 | 0% |
| 78 151 – 365 000 | 7% of taxable income above 78 150 |
| 365 001 – 550 000 | 20 080 + 21% of taxable income above 365 000 |
| 550 001 and above | 58 930 + 28% of taxable income above 550 000 |
SBC tax rates for financial years ending on any date between 1 April 2017 and 31 March 2018
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 0 – 75 750 | 0% |
| 75 751 – 365 000 | 7% of taxable income above 75 750 |
| 365 001 – 550 000 | 20 248 + 21% of taxable income above 365 000 |
| 550 001 and above | 59 098 + 28% of taxable income above 550 000 |
SBC tax rates for financial years ending on any date between 1 April 2016 and 31 March 2017:
| Taxable income (R) | Rate of Tax (R) |
|---|---|
| 0 – 75 000 | 0% of taxable income |
| 75 001 – 365 000 | 7% of taxable income above 75 000 |
| 365 001 – 550 000 | 20 300 + 21% of taxable income above 365 000 |
| 550 001 and above | 59 150 + 28% of taxable income above 550 000 |
SBC tax rates for financial years ending on any date between 1 April 2015 and 31 March 2016:
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 0 – 73 650 | 0% |
| 73 651 – 365 000 | 7% of the amount above 73 650 |
| 365 001 – 550 000 | 20 395 + 21% of the amount above 365 000 |
| 550 001 and above | 59 245 + 28% of the amount above 550 000 |