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HomeTurnover tax

Turnover tax,
for micro businesses.

Up to R1 millionTT02 and TT03Plain English
See Bookkeeping & Invoicing Provisional tax

What is turnover tax in South Africa?

Turnover tax is a simple tax for micro businesses with a qualifying turnover of up to R1 million a year. It is worked out on turnover instead of profit and replaces income tax, provisional tax and capital gains tax on business assets for that business. You choose it before the tax year starts, pay twice a year (TT02) and file one annual return (TT03).

Bookkeeping & Invoicing: three plans from R190 to R950 a month. No setup fee, month to month. Free trial: 7 days and 20 quotes or invoices, no card.

Two ways to be taxed

Income tax or
turnover tax.

Income taxTurnover tax
Taxed onProfitTurnover
Payments in the yearTwo IRP6 paymentsTwo TT02 payments
Annual returnITR12 or ITR14TT03
RecordsFull booksSimpler, but still kept
Turnover limitNoneR1 million a year
Is it for you

When turnover tax
makes sense.

It can suit

Small businesses with low costs, where tax on turnover works out lower than tax on profit, and owners who want the simplest compliance. A micro business may also be VAT registered.

It may not suit

Businesses with high costs or losses (turnover tax ignores costs), and some kinds of business that the rules exclude. Check with SARS or your accountant before you choose.

How Bookkeeping & Invoicing helps

The setup interview asks how you are taxed. For a turnover-tax business it does not show income tax write-off suggestions, puts the TT02 and TT03 dates in the deadline calendar, and lays out the TT03 figures in the year-end pack. You or your accountant submit on eFiling.

A note

This is a plain-English summary, not tax advice. Check your own case with SARS or your accountant.

Questions

Turnover tax
questions.

A qualifying turnover of up to R1 million a year.

Yes, a micro business on turnover tax may also be registered for VAT.

Two interim payments (TT02) in the year and an annual return (TT03) after it; the calendar shows your exact dates.

Yes, but the rules limit how soon you can come back. Check with SARS or your accountant.

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