COVID-19 measures: Small Business relief:
- For Small Businesses in need of financial support during this difficult time, refer to the Debt Relief Finance Scheme offered by the Department of Small Business Development, click here.
We realise that new business and small business are the life blood of our economy. So we know we must encourage their growth and ensure they prosper.
There are certain tax incentives especially designed for small business.
A small business that qualifies as a small business corporation (SBC) pays no income tax on the first R79 000 taxable income (for years of assessment ending on or after 1 April 2019).
The rate of tax you pay will depend on taxable income as the rates for a SBC are progressive (the higher the taxable income, the higher the tax rate).
Applying for an advance tax ruling
Clarity and certainty on the Commissioner’s interpretation and application of the tax laws about proposed transactions can be obtained through a binding private ruling (BPR) or a binding class ruling (BCR). The service is rendered to taxpayers on a cost-recovery basis but SMMEs qualify for a reduced application fee of R2 500 per application, and no fee is charge for the first 15 hours of work. Thereafter, an hourly rate of R650 is payable. For more information, see Advance Tax Rulings (ATR).
Tax rates 1 April 2020 – 31 March 2021 – see changes from last year
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 1 – 83 100 | 0% of taxable income |
| 83 101 – 365 000 | 7% of taxable income above 83 100 |
| 365 001 – 550 000 | 19 733 + 21% of taxable income above 365 000 |
| 550 001 and above | 58 583 + 28% of the amount above 550 000 |
Tax rates 1 April 2019 – 31 March 2020 – see changes from last year
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 0 – 79 000 | 0% of taxable income |
| 79 001 – 365 000 | 7% of taxable income above 79 000 |
| 365 001 – 550 000 | 20 020 + 21% of taxable income above 365 000 |
| 550 001 and above | 58 870 + 28% of the amount above 550 000 |
Tax rates 1 April 2018 – 31 March 2019
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 0 – 78 750 | 0% |
| 78 151 – 365 000 | 7% of taxable income above 78 150 |
| 365 001 – 550 000 | 20 080 + 21% of taxable income above 365 000 |
| 550 001 and above | 58 930 + 28% of taxable income above 550 000 |
Tax rates 1 April 2017 – 31 March 2018
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 0 – 75 750 | 0% |
| 75 751 – 365 000 | 7% of taxable income above 75 750 |
| 365 001 – 550 000 | 20 248 + 21% of taxable income above 365 000 |
| 550 001 and above | 59 098 + 28% of taxable income above 550 000 |
Tax rates 1 April 2016 – 31 March 2017
| 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 |
Micro businesses that qualify should consider registering for Turnover Tax as this will reduce and simplify their tax compliance and administrative burden.
To find out more about the accelerated deprecation relief available in Urban Development Zones simply click here.
As a South African employer you now have a great opportunity to boost the employment of young work seekers. To find out more about the Employment Tax Incentive which brings tax relief to employing those under 30 click here.
