Tax breaks for small businesses
Image by: MARIANNE PRETORIUS / The Times
Micro and small businesses have received regulatory and tax-free threshold breaks from Finance Minister Pravin Gordhan.
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Micro businesses (with an annual turnover of less than R1-million) will from March 1 have the option of paying turnover tax, VAT and employees' tax twice a year.
The Treasury warned that the build-up of tax liability would require taxpayers "to ensure that funds are available when payment is due".
To encourage small incorporated businesses, the tax-free threshold of such firms will increase to R63556 from R59750. Taxable income of up to R350000 will be taxed at 7%, up from the current threshold of R300000 at 10%.
Above R350000, the normal corporate tax rate of 28% applies.
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