Page 4 - Companies & Dividend Tax
P. 4
COMPANIES & CLOSE CORPORATIONS
SBC – Definition (Section 12E(4)(a) and SILKE chapter 19.5.4)
• Gross income threshold: R20m.
• Includes any close corporation, cooperative, private
company or personal liability company
• Note that membership in a co-operative bank or social or
consumer co-operative will not disqualify those members
from receiving relief in respect of another small business
corporation if 5% or less interest is held in the co-operative
section 12E(4)(a)(ii)(dd) and (ff)
• Interest in a venture capital company (section
12E(4)(a)(ii)(gg) is excluded from the syllabus.
• The small business corporation may not be a personal
service provider as defined in the Fourth Schedule
4
