Cape Town - Further tax relief for small businesses, including an increase in the monetary tax thresholds applicable for small business corporations, has been announced.
The Budget Review proposes that the R14m threshold for small business corporations be increased to R20m and that the graduated tax structure for such corporations be revised.
The taxable income of businesses below R67 111 (previously R63 556) will not be taxed.
Taxable income of between R67 112 and R365 000 (previously R63 557 to R350 000) will be taxed at 7.0%, between R365 000 and R550 000 (previously above R350 000 at 28%) at 21%, and above R550 000 at 28%.
This means that a new tax bracket has been added.
The application of the same rate structure to the trading activities of public benefit organisations will also be explored.
The review says the feasibility of special support for social-impact businesses, which have both profit-making and social objectives, is being explored.
Encouraging investment in such businesses is in line with the policy objectives of small business development, social solidarity and job creation.
The South African Revenue Service is working with the department of home affairs and other agencies to register small and micro businesses, including those operated by foreigners, says the Budget Review.
- Fin24
* Visit our
2013
Budget section for full coverage of Finance Minister
Pravin Gordhan's
National Budget speech.
Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.