Dear fellow taxpayer,

The changes to the tax system are still big news, especially if you’re a small business and want to take full advantage of the amendments. Let’s take the presumptive turnover tax as an example...

Why would you want to move your business over to the turnover tax system?
 
Well, the turnover tax is a simplified tax system for very “micro businesses”, which are essentially companies, CCs, sole traders or partnerships with a turnover of not more than R1 million per year. So moving onto the turnover tax system means SARS will no longer ask you to complete a full annual tax return with annual financial statements. Instead, your annual return will simply state your turnover and you’ll pay tax based on that amount.

You’d calculate your tax liability based on the following table:                          
                                  
Turnover                                          Rate of tax         

R 0    -    R 100 000                            0%
R 100 001    -    R 300 000                  1%    of turnover exceeding    R 100 000
R 300 001    -    R 500 000                   R 2 000    +   3%    of turnover exceeding    R 300 000
R 500 001    -    R 750 000                   R 8 000    +   5%    of turnover exceeding    R 500 000
R 750 001    -    R 1 000 000                R 20 500   +   7%    of turnover exceeding    R 750 000
                                
Don’t forget: If you intend on registering for this new presumptive turnover tax, you must register by the end of February 2009!

If paying less tax isn’t enough to completely eliminate the stress from your job, here’s more good news: YOU can become a more effective, more respected leader in just 44 minutes…

Until next week.
 
Regards
 
Nothando Hlatshwayo

Managing Editor
The Practical Tax Handbook