Micro businesses and small businesses have
received welcome regulatory and tax-free threshold breaks from Finance Minister
Pravin Gordhan's latest Budget.
Micro businesses (those with annual turnover
below one million rand) will from March 1 have the option of making payments for
turnover tax, VAT and employees' tax at twice-yearly intervals.
The Budget Review document said it was further
envisaged that a single combined return will be filed on a twice-yearly basis
from March 1, 2013. The number of returns required for these taxes will fall
from about 18 per year to only two a year in 2013.
However, the National Treasury sensibly warned
qualifying taxpayers that the build-up of tax liability will require taxpayers
?to ensure that funds are available when payment is due?.
To encourage small incorporated businesses, the
Budget Review document said the tax-free threshold of such firms would increase
to R63,556 from R59,750. It also said taxable income of up to R350,000 would be
taxed at 7%, up from the current threshold of R300,000 at 10%.
For taxable income above R350,000, the normal
corporate tax rate of 28% applies.
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