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Stacy says: 15 March 2024 at 18:31 Hi there, I would like to find out if I should be applying for turnover tax or small business tax, and if I would be considered a micro business. I have just completed my provisional tax return for 2024-01 on Tax Tim and the tax rate is 27%, which seems so high! This is my first tax return for my business, please help. |
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TaxTim says: 18 March 2024 at 8:24 Registered companies with the CIPC are taxed at a standard tax rate of 27% unless it qualifies as a Small Business Corporation (SBC) or a micro business for turnover tax (i.e with qualifying turnover of less than R1m a year). Please refer to the following to confirm if the company qualifies: - Is My Business A Small Business Corporation? - Should I Register For Turnover Tax? - What Is Turnover Tax? - Company Returns |
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Stacy says: 18 March 2024 at 9:58 I worked through the decision tree to see if my business is a SBC. I've just seen that 'consulting' is listed as a disqualifier. So, clearly I can't take advantage of the special SBC reduced tax rates. Is there anything else I can do to qualify for lower tax rates, or anything else I can do to lower the tax payable by my company? |
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TaxTim says: 18 March 2024 at 10:05 Yes, that is correct. Consultation services do not qualify for SBC tax rates. Unfortunately, there is nothing more you can do to lower the company's tax liability other than claim for all the allowable business expenses incurred. |
