Good News for Small Business Owners – SAPA
Finance Minister Pravin Gordhan had tax-relieving good news for small business owners in his 2012/13 Budget, tabled in the National Assembly on Wednesday 22 February.
Gordhan said the tax-free threshold for small businesses would be increased to R63,556 in the coming year, while the 10 percent tax rate would be reduced to seven percent.
The threshold to which this tax rate applied would be increased to R350,000.
“For taxable income above R350,000, the normal 28 percent corporate rate applies,” Gordhan said.
From March, qualifying micro-businesses — those within the R1 million turnover limit — would be able to pay turnover tax, VAT and employees’ tax twice a year.
This meant that the number of returns and payments a year would be reduced from about 18 to just two, Gordhan said.