Turnover tax is a simplified system aimed at making it easier for micro business to meet their tax obligations. The turnover tax system replaces Income Tax, VAT, Provisional Tax, Capital Gains Tax, and Dividends Tax for micro businesses with a qualifying annual turnover of R 1 million or less.

As the name implies, Turnover Tax is a type of tax, which is calculated against the turnover of a business, as opposed to a percentage of profit (i.e. income less business expenses) as per usual business tax. This difference reduces the administration burden on business owners as there is less of a need to keep a detailed record of expenses and understand which are deductible for tax purposes.

Turnover tax is not available for just any business, though, and you will have to meet SARS requirements in order to register.

Should you meet all the requirements, the turnover tax rates are significantly lower than the tax rates under the standard tax system – potentially saving you huge amounts in Tax.

Content Discussed:

• What is Turnover Tax?
• Who is it for?
• What is taxable turnover for Turnover Tax purposes?
• Who can register for Turnover Tax?
• Register and De-register for Turnover Tax
• How to submit Turnover Tax – it is different from other tax submissions?
• What records should be kept?

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