WARNING: 31 January 2012 is the deadline for your Turnover Tax returns!

The question is: On 31 January 2012, are you going to pay 73% more – or less – tax?
 

Dear owner,

It’s no secret that taxes form a huge chunk of your business’s expenses. A chunk you would rather see in your bank account, I’m sure!

You can’t avoid the taxman. But you CAN make the most of tax loopholes and systems that shrink your tax liability...

And Turnover Tax may just be one of them!

Turnover Tax was implemented by SARS, specifically to help micro-businesses in South Africa by reducing the paperwork and the taxes they have to pay.

Need proof?

Tim has just launched a mobile dog grooming business, Waggers. He’s trying to decide whether he should switch to Turnover Tax, to simplify his life.

So he does a step-by-step comparative:
Step #1:  Tim calculates his estimated turnover for the year. He charges R90 per customer; he sees 10 such customers each day, six days a week.
R90 x 6 customers x 6 days/week x 50 weeks = R162 000

Step #2: Tim estimates how much Turnover Tax he’ll pay on this estimated turnover:
 

    
This means Tim will pay R1 in tax for each of the R62 000 he earned above the R150 000 threshold.
Estimated Turnover Tax due: R12 000

Step #3: Tim calculates how much regular tax he would have to pay.
 

This means Tim can expect to pay tax of 28% on his estimated turnover = R45 360
 

Step #4: Turnover Tax vs regular tax = R12 000 vs R45 360
It’s clear that Turnover Tax is the cheaper option.

Registering for Turnover Tax is as easy as the TT01 form…

We’ll show you how to register – step-by-step. It’ll take you minutes, literally!
To qualify, all you need to do is answer a few simple questions about your turnover and your business structure.

Checklist: Do you qualify to pay 73% less tax, like Tim?

Answer “Yes” to all these questions, to qualify for Turnover Tax and pay less in tax:

• Will your turnover be R1 million or less for the year of assessment?
• Is your business registered for Vat – and if so, are you willing to be de-registered from Vat to be on the Turnover Tax system? (Though from 1 March 2012, you’ll be allowed to be registered for Vat and Turnover Tax.)
• Does your financial year-end fall on the last day of February?
• Can you confirm that you weren’t registered for Turnover Tax in the last three years?
• If you earn income from “professional services”, can you confirm that it’s not more than 20% of the total income for the year?
• If your business has disposed of assets, can you confirm the income from this disposal (over the last three years) is less than R1.5 million in total?
• Do you agree your business is not a public benefit organisation (PBO)? Non-profit company (NPC) or a recreational club?
• If your business is a labour broker, does it have a SARS exemption certificate?
• If the business is a partnership, will all the partners remain individuals throughout the coming year of assessment?
• Can you confirm that neither the owner nor any of the partners hold shares/interests in a CC, company or cooperative? Remember, this excludes:
  •  Interests in listed South African companies;
  •  Interests in collective investment schemes;
  •  Interests in body corporates and share block companies;
  • Interests in venture capital companies;
  • Interests of less than 5% in social or consumer co-operatives;
  • Interests of less than 5% in cooperative burial societies or primary savings co-operative banks;
  • Interests in friendly societies;
  • Interests in a company that didn’t trade during any year of assessment and which didn’t own assets with a total market value that exceeds R5 000 during any year of assessment;
  • Interests in any company that has taken steps to liquidate, wind up or deregister?  

If you answered “Yes” to these questions, then you could register for Turnover Tax today - YOURSELF!
 

Find out how, with our exclusive eBook – Turnover Tax 101. It explains how to register, how to calculate your tax liability, how to pay SARS and how to complete your Turnover Tax returns.

You won’t need to hire a consultant to get this right. With Turnover Tax 101, you’ll be able to do it yourself. You’ll save thousands of rands, and you’ll be in total control of your business taxes!

What’s more, by understanding how SARS taxes and administers your business, you’ll avoid penalties – saving your business even more money! And ensuring that your business has a sqeuaky clean record with SARS.

Priced at just R340.86 (incl Vat), this eBook pays for itself, since it tackles Turnover Tax from start to finish (and answers questions you never even thought you’d have).

Here’s what one satisfied business owner had to say about Turnover Tax 101:
“I found this report very helpful and informative, answering all the questions I had on Turnover Tax and filling in those grey areas.” – Jeremy Miles, owner: Eish Design.

So don’t waste another minute – or another Rand! Get your copy of Turnover Tax 101 today!

Fulvia Stoltz
Product Manager: Turnover Tax 101

P.s. I’m so confident that you’ll find this eBook so valuable, I’m giving you seven days to cancel it for a refund, if it doesn’t measure up.