Turnover Tax

Question 1

What are the 7 qualifying conditions for turnover tax?

Answer 1

1. Qualifying turnover <R1million
2. Shareholders or members must all be natural persons
3. Financial year-end must be end of February
4. Investment and professional service income < 20% of total receipts
5. Members and shareholders may not at any point during the year of assessment hold any share or interest in the equity of another company
6. Natural persons may not be personal service providers or labour brokers
7. Total receipts for disposal of immovable property and business capital assets < R1.5million during any 3 year period

Question 2

What is qualifying turnover?

Answer 2

Total receipts from any business activity excluding any capital amounts and exempt amounts

Question 3

What income is exempt from normal tax for a microbusiness?

Answer 3

All income except investment income and remuneration