TAX RATES: 28 FEBRUARY 2018 – MICRO BUSINESSES

TAX RATES: 28 FEBRUARY 2018 – MICRO BUSINESSES

TURNOVER TAX FOR MICRO BUSINESSES

Financial years ending on any date between 1 March 2017 and 28 February 2018.

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

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.