Is Turnover Tax worth it?

[Intothedeepbluesea]

Personally, I think that the Small Business Corporation tax structure trumps Turnover Tax:

R​0 - R70 700 | 0% of taxable income​
R70 701 - R365 000​ | 7% of taxable income above R70 700
R365 001 - R550 000​ | R20 601 + 21% of taxable income above R365 000​
R550 001 and above​ | R59 451 + 28% of the amount above R550 000​

With SBC tax, your first R70,700 of taxable income is tax free. The only way you could beat that with Turnover Tax is if you had revenue of R150,000 and a net profit margin of 50%!

Is that tax structure avail to sole props? What are the requirements?

[Greig Whitton]

Is that tax structure avail to sole props?

No.

What are the requirements?

Numerous and complex.

[Intothedeepbluesea]

No.



Numerous and complex.

Unqualified advice to say it trumps Turnover tax if it isn't even avail to all small businesses and has onerous requirements for being eligible.

TT tax obviously has it's place and if an unwise owner decides to not keep proper records for his own business admin/planning purposes or fails to prepare for the time when he needs to leave TT that's besides the point, the fundamental benefits of TT remain. Your link is dead by the way.

[Greig Whitton]

Unqualified advice to say it trumps Turnover tax if it isn't even avail to all small businesses and has onerous requirements for being eligible.

Turnover tax isn't available to all small businesses either and has its own requirements. Assuming a business qualifies for both, it will probably benefit more from the SBC tax structure.

Your link is dead by the way.

It works for me. What browser are you using? (I'm using Chrome with the built-in PDF plugin disabled and the Adobe PDF plugin enabled)

[Intothedeepbluesea]

iPad, says 404 not found

[pmbguy]

The link works for me