Small Business Tax Rates In South Africa
Small Business Tax Rates In South Africa 2021
What are the Small Business Tax Rates In South Africa ? Turnover tax is a simplified tax system for small businesses with a qualifying turnover of not more than R1 million per annum. It is a tax based on the taxable turnover of a business and is available to sole proprietors (individuals), partnerships, close corporations, companies and co-operatives.
Here are the Available Tax Rates For Small Businesses In SA According to www.sars.gov.za/
Financial years ending on any date between 1 April 2021 and 31 March 2022:
| 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 | 19 439 + 21% of taxable income above 365 000 |
| 550 001 and above | 58 289 + 28% of the amount above 550 000 |
Other Business Tax Rates
As a foreign entrepreneur with a business visa, you are mandated to employ a minimum of 5 South Africans. On the other hand, you can employ holders of a permanent residency in South Africa. Also, you are required to withhold certain taxes from the remuneration of your employees. This will be paid to the tax authorities in South Africa.
Deductions
PAYE is the main tax you will be paying on behalf of your employees. Just like in other countries, the PAYE is deducted from the gross pay of the employee which is then paid to the tax authorities.
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