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Taxco Income Tax and the Micro Business

Income Tax and the Micro Business

 

This course provides information about a simplified tax system that is available for micro businesses (businesses with a qualifying turnover of R1 million or less). The system provides for a single tax in the place of normal tax, capital gains tax (CGT) and, to an extent, dividends tax. Under normal circumstances an application to switch to (or from) the system must be made before 1 March each year.

As the system is optional, it is important to thoroughly review the operations of a business before deciding on whether to switch or not. Factors such as the overhead costs of the business, its expected taxes otherwise payable and – most importantly – its tax compliance costs should be taken into account in making the decision.

 

Contents

Turnover tax

  • Who may qualify as a micro business?
  • What is qualifying turnover?
  • Specific anti-avoidance rule for qualifying turnover
  • Connected persons in relation to a natural person
  • Connected persons in relation to a company
  • Persons who do not qualify as micro businesses
  • Prohibition and limitation on interests in other companies or partnerships
  • Limitation on investment and professional service income
  • Limitation on capital disposals
  • Year of assessment rule
  • Only interests and shares held by individuals permitted
  • Exclusion of personal service providers and certain labour brokers
  • Exclusion of public benefit organisations, recreational clubs, associations and small business funding entities
  • Special rules relating to partnerships
  • Taxable turnover
  • Specific inclusions in taxable turnover
  • Specific exclusions from taxable turnover
  • Capital gains tax
  • Dividends tax
  • Turnover tax administration
  • Registration
  • Deregistration
  • Voluntary VAT registration
  • Payment of turnover tax
  • Payments of other taxes
  • Record-keeping
  • General administrative provisions

 

One day facilitated workshop

Cost/Investment – R2200.00

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South African Institute of Professional Accountants Accredited Training Centre
Taxco Accountants ATC179

 

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