What is the small business/home business Income Tax threshold?

I would like to start a small design business to supplement my income. What is the maximum per annum that is taxable? Many thanks.

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TaxTim TaxTim says:
26 July 2012 at 12:39

To qualify as a small business for tax purposes the business must have Turnover of less than R14m per year.

If your business meets that threshold then the following rates will apply:

0 - 63 556 - 0%
63 557 - 350 000 - 7% of the amount above 63 556
350 001 and above - 20 051 28% of the amount above 350 000

So if your small business is earning less than R63 556 per year you wont pay tax on that taxable income and even under R350 000 per year the tax rate is much lower than for normal companies.

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