Turnover Tax for Micro Businesses
Upon registration as a micro business with SARS, the taxpayer will be replacing Income Tax, Provisional tax, Capital Gains Tax, Secondary Tax on Companies and VAT with a simplified tax system based on a sliding scale. This system is available to certain taxpayers and will result in automatic de-registration for VAT (should the taxpayer already be a VAT vendor). PAYE/SDL/UIF etc are excluded from this tax regime.
Please see appended questionnaire to determine if you should consider this new tax system. Should you answer ‘No’ to any of the questions, your business will not be eligible for this system.
Kindly contact either Dave Rich or Alexis Sacks to complete a full analysis to ensure that you exercise the best option for your business.
NB – Elections for the new system must be made to SARS by no later than 30 April 2009
Should you require any further information, please do not hesitate to contact us.