Data provided by McGregor BFA
All data is delayed
See More

Tax breaks for small business

Feb 22 2012 14:31 Mzwandile Jacks

Related Articles

All eyes on Gordhan's budget

Gordhan gets tax prods for budget

Gordhan gets tips on R1 trillion budget

“Golden goose” exhausted

Budget balancing act

Standard targets Africa’s SME sector


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
Add your comment
Comment 0 characters remaining

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.

The ANC's election claims examined - Report

In the run-up to the 7 May election, the ANC says it has a “good story to tell” about its performance over that period. This is the first of two reports evaluating key claims.


Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

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