Turnover tax is the best kept secret in plain sight for SMEs. It is a simplified system aimed at making it easier for a business with an annual turnover of R1 million or less 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. A micro business that is registered for turnover tax can, however, elect to remain in the VAT system.
Turnover tax is worked out by applying a tax rate to the taxable turnover of a micro business.
Ask your accountant or financial manager today whether you qualify for or are registered!