In order to qualify, your business needs to comply with the following requirements:
- All Shareholders / Members, throughout the year of assessment, have to be natural persons
who hold no shares in any other Private Company or CC, except for:
- Businesses that are inactive and have Assets of less than R 5,000.00, OR
- Have taken steps to liquidate, wind-up or deregister.
- Total Gross Income for the year must be less than R 20 million.
- Not more than 20% of the Gross Income and all the Capital Gains consists collectively of Investment Income and Income from rendering a personal service unless the business employs three or more unconnected full time employees for core operations throughout the year of assessment.
- The business is not an employment entity.
APPLICABLE TAX – YEAR OF ASSESSMENT FROM 1 APRIL 2015 TO 31 MARCH 2016
|
TAXABLE INCOME |
RATES OF TAX |
|
0 – 73 650 |
NIL |
|
73 651 – 365 000 |
R 7% of amount over R 73 650 |
|
365 001 – 550 000 |
R 20 395 + 21% over R 365 000 |
|
550 001 + |
R 59 245 + 28% over R 550 000 |
