Page 24 - F6 Slides (CGT,TT,ET AND PT)

Qualifying turnover

• The qualifying turnover refers to the amount that is used to evaluate

whether a person could qualify as a micro business, whereas the

taxable turnover (see 23.5) is the tax base for the micro business on

which the actual amount of turnover tax due is calculated.

• Qualifying turnover means the total receipts from carrying on

business activities, but excluding any amounts received of a capital

nature (par 1 – definition of ‘qualifying turnover’).

• Where the qualifying turnover of a micro business does not exceed

the amount of R1 million in any year of assessment, it is able to elect

to be taxed in terms of this regime (par 2(1)).