SMMEs reminder:

We have noticed that there are still so many small, medium and micro enterprises that are NOT aware of the tax benefits SARS offers to these categories of company. Worse off, we onboard so many clients and come to find that their previous accountants were not taxing the company properly either, that is burnt money and irrecoverable.

Please note: if you meet the criteria below, there are some great tax benefits to take advantage of, SMMEs!!!

1. Small Business corporation (SBC):

If you meet the criteria below, you will be taxed according to a sliding scale and not a flat rate of 27/28% on your net profit, annually:
turnover is less than R20 million in a year of assessment
the shareholders are not shareholders of any other private company
all shareholders are natural persons
not more than 20% of your annual income comes from investment income
you are not a personal service provider, as defined.

2. Turnover tax (TOT)
If you meet the criteria below, you will be taxed up to maximum of 3% on your turnover, not net profit, and your first R350 000.00 turnover will be completely tax free.
turnover is less than R1 million in a year of assessment.

We urge you to implement these tax systems if they apply to you! It will result in more cash your pockets and not the government!