In order to qualify, your business needs to comply with the following requirements :
1. 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, or
- Have taken steps to liquidate, wind-up or deregister.
2. Total Gross Income for the year must be less than R 20 million.
3. 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.
4. The business is not an employment entity.
APPLICABLE TAX
|
TAXABLE INCOME |
RATES OF TAX |
|
0 – 70 700 |
NIL |
|
70 701 – 365 000 |
R 7% of amount over R 67 112 |
|
365 001 – 550 000 |
R 20 601 + 21% over R 365 000 |
|
550 001 + |
R 59 451 + 28% over R 550 000 |
