Bookmark :
Skip to : [Content] [Navigation]
  • Big enough to count, small enough to care

    Big enough to count, small enough to care
  • Integrity forms the backbone of our business

    Integrity forms the backbone of our business


Back to News

New tax changes reduce burden on small businesses

18 Feb 2009

Jan FrankJan Frank

A ‘very small business’ as defined in the new Draft Revenue Laws Amendment Bill – a business with a turnover that does not exceed R1 million – may in future opt to be taxed on gross turnover rather than on taxable income.

This is valid for both incorporated and unincorporated businesses. Individuals, businesses rendering professional services and public benefit organisations do not qualify.

Very small businesses that wish to have this option, will be able to register for PAYE and UIF but not for VAT. The proposed implementation date is 1 March 2009.

Should a business with a turnover of less than R1 million therefore choose to voluntarily register for VAT, it will be unable to also register for the turnover tax.

The proposed tax rates, which are below those originally proposed in the 2008 budget, are as follows:

TurnoverTax liability
R0 – R100 000Exempt
R100 001 – R300 000

1% of the amount exceeding R100 000

R300 001 – R500 000

R2 000 plus 3% of the amount exceeding R300 000

R500 001 – R750 000

R8 000 plus 5% of the amount exceeding R500 000

R750 001 and aboveR20 500 plus 7% of the amount exceeding R750 000

For further information on the new turnover-based tax, contact Jan Frank of the Small Business Division, Tenk Loubser Incorporated (Somerset West), tel. 021 852 0382 or

    View Archives


    Tel: +27 (0) 87 985 0935

    London, UK

    Tel: +44 (0) 1784 439 955

    Somerset West

    Tel: +27 (0) 21 852 0382/4

    Cape Town

    Tel: +27 (0) 21 915 6666


    Tel: +27 (0) 21 872 7118