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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.
