FAQ: How will the returns and payments work in the turnover tax system?
“This will essentially consist of one annual return with two interim (provisional) payments. If liable, you will be required to make two interim payments, one for the first six months of the year of assessment (August) and the other for the full year of assessment (February), but after deducting the first interim payment. An annual […]
FAQ: What are the requirements for a micro business to qualify for turnover tax?
A natural person (sole proprietors and partners in a partnerships) or a company (including a close corporation and a co-operative) may qualify as a micro business if the qualifying turnover for the year of assessment does not exceed R1 million. The qualifying turnover includes the total receipts from carrying on business activities, excluding any amount […]
FAQ: How will I be informed of an unsuccessful registration for Turnover Tax?
A letter will be issued to the applicant informing them that the application has not been successful due to certain requirements not being met. In case the submitted TT01 form is incomplete, the taxpayer will be notified and the application will be considered once all of the information has been provided.
FAQ: Can I be registered for both the Turnover Tax and VAT?
Yes, as from 1 March 2012 persons registered for Turnover Tax may elect to register for VAT.
FAQ: Who does not qualify to be registered for Turnover Tax?
A natural person or company may be excluded from the Turnover Tax regime if: the shares are held in an unlisted company; more than 20% of the receipts are derived from rendering a professional service; the taxpayer is a personal service provider or a labour broker; if the company’s financial year end is not on […]
FAQ: Who can register for Turnover Tax?
Any individual or company whose qualifying turnover is less than R1 million for a year of assessment, may register for Turnover Tax. Specific factors can disqualify you from the turnover tax system. These can be found in paragraph 3 of the Sixth Schedule to the Income Tax Act.
FAQ: What is taxable turnover for Turnover Tax purposes?
The taxable turnover for a registered micro business includes all the amounts (not capital) received by that business during a year of assessment from their business activities in South Africa, including those amounts described in paragraph 6 of the Sixth Schedule to the Income Tax Act. The amounts described in paragraph 7 must be excluded.
FAQ: What is turnover tax?
Turnover Tax is a separate tax regime for micro businesses, that was designed to lower their administrative burden and with lower tax rates.
FAQ: I am in my final year of CTA, can I apply for the programme?
Yes, graduates in their final year (Honours/CTA) qualify to apply. However, acceptance is dependent on the successful completion of their CTA.
FAQ: What happens when trainees complete the three-year programme?
Trainees who successfully meet their academic/training requirements and have signed off their articles may apply for available positions within SARS, although there is no guarantee that they will be successful with a placement within SARS.
