Page 23 - F6 Slides (CGT,TT,ET AND PT)
P. 23
Introduction
• The turnover tax is a tax calculated on the turnover (total receipts) of a
micro business, and not on its profit or its net income. This method
eliminates the need for keeping detailed records of expenses.
• Where the qualifying turnover of a micro business does not exceed the
amount of R1 million in a given year of assessment, the business is able to
choose to be taxed in terms of this regime.
• The turnover tax effectively replaces the normal tax regime (also including
normal tax on capital gains). Every business should assess its individual
situation to determine which tax regime will suit it best.
• Micro businesses that choose the turnover tax regime are still required to
comply with the payroll levies, such as PAYE, SDL and UIF contributions , as
these are taxes generally borne by employees and collected by employers
(in this case, the registered micro business) on behalf of SARS.
