Small Business Relief

We realise that new business and small business are the life blood of our economy. So we know we must encourage their growth and ensure they prosper.
 
There are certain tax incentives especially designed for small business. A small business that qualifies as a small business corporation (SBC) pays no income tax on the first R75 750 taxable income (for financial years ending on any date between 1 April 2017 and 31 March 2018).
 
The rate of tax you pay will depend on taxable income as the rates for a SBC are progressive (the higher the taxable income, the higher the tax rate).
 
Tax rates 1 April 2017 - 31 March 2018 - see changes from last year
 
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

 
Tax rates 1 April 2016 - 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
 
Micro businesses that qualify should consider registering for Turnover Tax as this will reduce and simplify their tax compliance and administrative burden.

To find out more about the accelerated deprecation relief available in Urban Development Zones simply click here.

As a South African employer you now have a great opportunity to boost the employment of young work seekers. To find out more about the Employment Tax Incentive which brings tax relief to employing those under 30 click here.
 
Last Updated: 29/05/2017 9:35 AM     print this page
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