SMALL BUSINESS RELIEF

Governement realise that new business and small business are the life blood of our economy. So we know we must encourage their growth and ensure they prosper.
 
There are certain tax incentives especially designed for small business.
 
A small business that qualifies as a small business corporation (SBC) pays no income tax on the first R79 000 taxable income (for years of assessment ending on or after 1 April 2019).
 
The rate of tax you pay will depend on taxable income as the rates for a SBC are progressive (the higher the taxable income, the higher the tax rate).
 
Applying for an advance tax ruling

Clarity and certainty on the Commissioner’s interpretation and application of the tax laws about proposed transactions can be obtained through a binding private ruling (BPR) or a binding class ruling (BCR). The service is rendered to taxpayers on a cost-recovery basis but SMMEs qualify for a reduced application fee of R2 500 per application, and no fee is charge for the first 15 hours of work. Thereafter, an hourly rate of R650 is payable.
 
Tax rates 1 April 2021 – 31 March 2022 – see changes from last year
 
Taxable income (R) ​Rate of tax (R)
1 – 87 300 0% of taxable income
87 301 – 365 000 7% of taxable income above 87 300
365 001 – 550 000 19 733 + 21% of taxable income above 365 000
​550 001 and above 58 289 + 28% of the amount above 550 000
Tax rates 1 April 2020 – 31 March 2021 – see changes from last year
 
Taxable income (R) ​Rate of tax (R)
1 – 83 100 0% of taxable income
83 101 – 365 000 7% of taxable income above 83 100
365 001 – 550 000 19 733 + 21% of taxable income above 365 000
​550 001 and above 58 583 + 28% of the amount above 550 000