What is it?
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. A micro business that is registered for turnover tax can, however, elect to remain in the VAT system (from 1 March 2012).
Turnover tax is worked out by applying a tax rate to the taxable turnover of a micro business. Year of assessment ending on any date between 1 March 2021 and 28 February 2022:
Turnover tax is worked out by applying a tax rate to the taxable turnover of a micro business. Year of assessment ending on any date between 1 March 2021 and 28 February 2022:
| Turnover (R) | Rate of tax (R) |
|---|---|
| 0 – 335 000 | 0% |
| 335 001 – 500 000 | 1% of each R1 above 335 000 |
| 500 001 – 750 000 | 1 650 + 2% of the amount above 500 000 |
| 750 001 and above | 6 650 + 3% of the amount above 750 000 |
Who is it for?
Micro businesses with an annual turnover of R 1 million or less. The following taxpayers may qualify:
- Individuals (sole proprietors)
- Partnerships
- Close corporations
- Companies
- Co-operatives
How to register?
To register for Turnover Tax:
- Do a quick test to see if you quality for turnover tax
- For more information on how to register
How to submit?
The following channel can be used to submit Turnover Tax returns:
- Posting the return to SARS Processing centre: PO Box 436, Pretoria, 0001
How to pay?
There are three payment dates:
- 1st payment is in the middle of the tax year on the last business day of August i.e. 29 August 2014 on the TT02 – Payment Advice for Turnover Tax
- 2nd payment is at the end of the tax year on the last business day of February i.e. 27 February 2015 on the TT02 – Payment Advice for Turnover Tax
- Final payment is after the annual TT03 – Turnover Tax Return is submitted and processed. The submission of TT03 turnover tax returns is in line with the submission of the annual income tax returns, between 1 July and 31 January of the following year.
Click here for more information on how to pay and submit.
What records should be kept?
A big advantage of turnover tax is the reduced record-keeping requirements. The following records must be kept:
1. Records of all amounts received;2. Records of dividends declared;3. A list of each asset with a cost price of more than R10,000 at the end of the year of assessment as well as of liabilities exceeding R10,000.
To take account of the typical expenses incurred by a micro business and to eliminate the need for detailed recordkeeping of deductible tax expenses, the turnover tax rates are significantly lower than the tax rates under the standard tax system.
The following will help you with your record keeping:
- Recordkeeping workbook for individuals and partnerships
- Recordkeeping workbook for close corporations, companies and cooperatives
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Frequently Asked Questions
FAQ: What is turnover tax?
Turnover Tax is a separate tax regime for micro businesses,...
Read MoreFAQ: What is taxable turnover for Turnover Tax purposes?
The taxable turnover for a registered micro business includes all...
Read MoreFAQ: Who can register for Turnover Tax?
Any individual or company whose qualifying turnover is less than...
Read MoreFAQ: How do I register for turnover tax?
By submitting to SARS a completed TT01 form. The registration...
Read MoreFAQ: How do I de-register from Turnover Tax?
You can deregister from Turnover Tax voluntarily by writing to...
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