TURNOVER TAX FOR MICRO BUSINESSES
Financial years ending on any date between 1 March 2017 and 28 February 2018.
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TAXABLE TURNOVER,RATES OF TAX
R0 – R335 000,0%
R335 001 – R500 000,1% of the amount above R335 000
R500 001 – R750 000,R1 650 + 2% of the amount above R500 000
R750 001 – R1 000 000,R6 650 + 3% of the amount above R750 000
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Turnover tax for micro businesses is a simplified turnover based tax system substituting income tax and Capital Gains Tax. A micro business may voluntarily register for VAT. Turnover tax is an elective tax applicable to sole proprietors, partnerships and companies that meet certain criteria and have a turnover of less than R1 million per year.
A micro business may only voluntarily exit the turnover tax system before the beginning of a year of assessment.