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How to calculate turnover tax using the SARS tax tables

by , 06 April 2016
According to SARS, turnover tax is a simpler tax system, making it easier for micro businesses to meet their tax duties. It replaces Income Tax, VAT, Provisional Tax, Capital Gains Tax as well as Dividends Tax for qualifying micro businesses.

Here, we'll show you how to calculate your turnover tax, as indicated by SARS, using the SARS tax tables.

But first, let's take a look at who exactly qualifies for turnover tax...

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Who qualifies for turnover tax?

Turnover tax is for micro businesses with an annual turnover of R1 million or less.

The following tax payers may qualify:

·         Individuals (sole proprietors);
·         Partnerships;
·         close; corporations;
·         companies; and
·         co-operatives.
 
How do you calculate turnover tax?

Turnover tax is calculated by applying a tax rate to the taxable turnover of a micro business.

The rates are applicable for any year of assessment ending during the period of 12 months ending on the 28th of February 2016.

SARS Tax Table:

Turnover (R) Rate of Tax (%)
0 - 335 000 0%
335 001 - 500 000 1% of each R1 above 335 000
500 001 - 750 000 1 650 + 2% of the amount above 500 000
750 001 and above 6 650 + 3% of the amount above 750 000
*This table shows the Turnover Tax Rates applicable for any year of assessment ending during the period of 12 months ending on the 28th of February 2016
 

To learn more information on turnover tax, such as how to pay turnover tax, as well as how to fill out the TT02 form using the SARS tax tables, simply page over to Chapter T 16: Turnover Tax in your Practical Tax Loose Leaf Service handbook.

If you don't already have this indispensable resource, click here to order your copy today. 


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