What is it?
Turnover tax is a simplified system aimed at making it easier for micro business to meet their tax obligations. The turnover tax system replaces Income Tax, VAT, Provisional Tax, Capital Gains Tax and Dividends Tax for micro businesses with a qualifying annual turnover of R 1 million or less. A micro business that is registered for turnover tax can, however, elect to remain in the VAT system (from 1 March 2012).
Turnover tax is worked out by applying a tax rate to the taxable turnover of a micro business. Year of assessment ending on any date between 1 March 2021 and 28 February 2022:
|Turnover (R)||Rate of tax (R)|
|0 – 335 000||0%|
|335 001 – 500 000||1% of each R1 above 335 000|
|500 001 – 750 000||1 650 + 2% of the amount above 500 000|
|750 001 and above||6 650 + 3% of the amount above 750 000|
Who is it for?
- Individuals (sole proprietors)
- Close corporations
How to register?
- Do a quick test to see if you qualify for turnover tax
- For more information on how to register
How to submit?
The following channels can be used to submit Turnover Tax returns:
How to book an appointment for Turnover Tax
Step 1: Select Company/Trust/Entity Representative, then select SMME and select ‘Make a new appointment’:
Top tip: Select in a top-to-bottom sequence, do not select SMME first.
Or if you are a Tax Practitioner, select Tax Practitioner, then select SMME and select ‘Make a new appointment’:
Step 2: Complete the rest of the information, and at Appointment Information, select Telephonic (Video is not available for this transaction), then in the Reason Category ‘Other’ and in Reason for Appointment, select ‘Turnover Tax’:
How to pay?
- 1st payment is in the middle of the tax year on the last business day of August i.e. 29 August 2014 on the TT02 – Payment Advice for Turnover Tax
- 2nd payment is at the end of the tax year on the last business day of February i.e. 27 February 2015 on the TT02 – Payment Advice for Turnover Tax
Final payment is after the annual TT03 – Turnover Tax Return is submitted and processed. The submission of TT03 turnover tax returns is in line with the submission of the annual income tax returns, between 1 July and 31 January of the following year.
Top tip: Making Turnover Tax payments on the payment advice (TT02):
- Payments can be made at banks or electronically using internet banking.
- When payment is made, it is essential that the ‘Beneficiary ID’ and ‘Payment Reference Number’ are quoted. The Payment Advice (TT02) will assist with this and other matters relating to interim payments.
Note: The TT02 payment advice is the taxpayer’s record. It must not be submitted to SARS for TT purposes.
Where any day specified for any payment to be made under the provisions of the Act falls on a Saturday, Sunday or public holiday, the payment must be made no later than the last business day before the Saturday, Sunday or public holiday.
Click here for more information on how to pay and submit.
What records should be kept?
1. Records of all amounts received;2. Records of dividends declared;3. A list of each asset with a cost price of more than R10,000 at the end of the year of assessment as well as of liabilities exceeding R10,000.
LAPD-Gen-G02 – Guide for Tax Rates Duties Levies
LAPD-Gen-G08 – Guide on the Taxation of Professional Sports Clubs and Players
LAPD-Gen-G09 – Tax Guide for Small Businesses
LAPD-IT-G19 – Comprehensive Guide to Dividends Tax
LAPD-IT-G23 – Guide on the Taxation of Franchisors and Franchisees
LAPD-IT-G24 – Guide on Mutual Agreement Procedures
LAPD-IT-G30 – Guide on venture capital companies
LAPD-TT-G01 – Tax Guide for Micro Businesses
LAPD-VAT-G01 – VAT 403 Vendors and Employers Trade Classification Guide
LAPD-VAT-G10 – VAT 421 Guide for Short Term Insurance
Legal-Pub-FAQs-VAT12 – FAQs on BGRs 40 and 41 Non-executive Directors (VAT and PAYE)
Legal-Pub-Guide-Gen01 – Taxation in South Africa
Legal-Pub-Guide-Gen09 – Tax Guide for Small Businesses
Legal-Pub-Guide-VAT15 – VAT Quick Reference Guide for Non-Executive Directors
TT-GEN-01-G01 – Administration of Turnover Tax – External Guide
TT01 – Application for Turnover Tax Online Completion – External Form
TT01(a) – Application for Turnover Tax Manual Completion – External Form
TT02 – Payment Advice for Turnover Tax – External Form
TT03 – Turnover Tax Return – External Form
Frequently Asked Questions
FAQ: What is taxable turnover for Turnover Tax purposes?
The taxable turnover for a registered micro business includes all...Read More
FAQ: Who can register for Turnover Tax?
Any individual or company whose qualifying turnover is less than...Read More
FAQ: How do I register for turnover tax?
By submitting to SARS a completed TT01 form. The registration...Read More
FAQ: How do I de-register from Turnover Tax?
You can deregister from Turnover Tax voluntarily by writing to...Read More