All data is delayed
See More

Tax breaks for small business

Feb 22 2012 14:31
Mzwandile Jacks

Pretoria - Finance Minister Pravin Gordhan on Wednesday said there would be further tax relief for small businesses and micro-enterprises.

He said the tax-free threshold for small business corporations would be increased to R63 556, adding the 10% rate would be reduced to 7%.

“The threshold up to which this rate applies is increased to R350 000. For taxable income above R350 000, the normal 28% corporate rate applies,” Gordhan said.

He said with effect from next month, qualifying micro-businesses (within the R1m turnover limit) would be able to pay turnover tax, VAT and employees’ tax twice a year.

This meant the number of returns and payments a year would be reduced from about 18 to just two.

Several reforms of the turnover tax for micro-businesses (with annual turnover below R1m) were announced in 2011.

The businesses would be given the option of making payments for turnover tax, VAT and employees’ tax at twice-yearly intervals from March this year.

It was further envisaged that a single combined return would be filed on a twice-yearly basis from March 1 2013.

The number of returns required for these taxes would fall from about 18 to only two a year in 2013.

pravin gordhan  |  sa economy  |  smmes  |  budget 2012


Budget in a nutshell

2012-02-22 14:28


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

SABudget on Twitter

Twitter icon

Join the conversation by using SABudget every time you tweet.


Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote