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Grant says: 27 April 2016 at 15:10 If my company was registered for turnover tax and it makes R500 001. I would be taxed R1650 2% of taxable turnover above 500 000. Am I correct in saying as a small business the company tax would be 20 300 21% of taxable income above 365 000? if not registered for turnover tax. Would the tax I pay be on the profit, if I made for example R 80 000 for the year? would it be 7% as per below? Taxable Income (R) Rate of Tax (R) 0 - 75 000 0% of taxable income 75 001 - 365 000 7% of taxable income above 75 000 365 001 - 550 000 20 300 21% of taxable income above 365 000 550 001 and above 59 150 28% of taxable income above 550 000 |
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TaxTim says: 28 April 2016 at 11:03 Yes, if you qualify to be a Small Business Corporation for tax purposes then you are taxed on your profit (i.e. sales less expenses) per the table you have inserted in your question. If you are registered for turnover tax, you pay tax based on your sales/turnover (expenses are not taken into account in the calculation). There are strict criteria in order to qualify to be a Small Business Corporation for tax purposes. Please also check the Turnover Tax requirements. |
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