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: How do I de-register from Turnover Tax?

You can deregister from Turnover Tax voluntarily by writing to the Commissioner expressing your wish to do so in a manner prescribed by the Commissioner. Or, you may be forced to deregister if your turnover exceeds R1million for a given tax year.

FAQ: How do I register for turnover tax?

By submitting to SARS a completed TT01 form. The registration application should be submitted before the beginning of a year of assessment (a year of assessment runs from 1 March to 28 February), or a later date prescribed by the Commissioner in a Government Notice. Should a person commence trading activities during a year of […]

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.