Fill in your details below and one of our friendly consultants will call you back as soon as possible.
  • This field is for validation purposes and should be left unchanged.

Follow us on Twitter

  • RT  @TyronneNel :  @zamarcashton   @jayshnaidoo   @DineoTsamela   @gradidgec  You’re too kind Sir. #Accounting #SMEtaxation & #Mentoring via  @Phezulu … 3 days ago
  • “Can my business survive my death?” None of us are immortal! Here are a few tips that may help your #SmallBusiness… https://t.co/E0iOmLwoCl 3 days ago
  • Need to #FindanAccountant in Randburg? Laurie has been a member of Phezulu since 2012. To find out more visit… https://t.co/LJ0HkM0LC4 7 days ago
  • Invest in a CORPORATE COMMUNITY in the heart of MAURITIUS and be eligible for an INVESTORS PERMIT to work and live… https://t.co/Gn4KpESySR 7 days ago
  • ✅REMINDER – PAYE submission is due TODAY!✅ Be sure to pay over PAYE to SARS by the 7th to avoid penalties. Talk to… https://t.co/WAM8CFs2Yd 7 days ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, at this time of year you have two choices, (1) slow down and relax like the main stream or… 7 days ago
  • INVEST in a CORPORATE COMMUNITY in the heart of MAURITIUS BSP TOWERS consists of a portion of freehold land togethe… https://t.co/6VwRiSwo9Z 1 week ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, the best gift you can give yourself is a clear mind! Focus on only two or three major act… 1 week ago
  • RT  @Phezulu_Group : Need an accounting firm in JHB East? Phezulu VBO has a franchise located in Alberton, where Hennie Venter is available… 1 week ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, when you’re complaining that it’s taking too long to become a success, just remember: You… 2 weeks ago
  • Need an accounting firm in JHB East? Phezulu VBO has a franchise located in Alberton, where Hennie Venter is avai… https://t.co/LxHOWXafZJ 2 weeks ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, don’t delay the hard choices! Your success is determined by the hard choices you either m… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, your banker is not your friend! They have a job to protect your savings, so don’t get ups… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, businesses might come and go, but entrepreneurs are forever! Today’s failure is tomorrow’… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, if you’re worried about the small business ecosystem - ask yourself: “What are you doing… 3 weeks ago
  • ✅REMINDER✅ MANUAL Submissions for VAT is due TODAY! ELECTRONIC Submissions for VAT is due by the 30th of November!… https://t.co/oMtrEwXSyj 3 weeks ago
  • RT  @RocketsLife : AfroCoustic Thursdays at  @RocketsLife . Weekly lineups of incredible SA talent, in support of  @savingthewild_  #rocketsli… 3 weeks ago
  • What an awesome achievement Guys, honoured to have played a small part https://t.co/VpPfli08BA 3 weeks ago
  • RT  @ThinkroomTalk : Thanks to all who helped make #GEW2018 fun and a great success! We publish our research on findings of #21daybusinesscha… 3 weeks ago
  • Grab these Business and Personal Checklists to ensure you don’t forget anything before closing up shop for the holi… https://t.co/dJiNd2Nt2a 3 weeks ago

Subscribe to our mailing list

* indicates required
 In Newsletters

Small Business Corporations Tax – What is it? Do you qualify?

Is your business viewed as a Small Business Corporation by SARS?

  • Is your business Turnover less that R20 million per year?
  • Are the shareholders in your business all natural persons?
  • Do you only own your one business?
  • Does less that 20% of your turnover come from “investment” income?
  • Is less than 20% of your income from rendering a “personal” service?

If you have answered YES to all the above questions your business could be making massive Income Tax savings.

Are the Small Business Corporation Income Tax Savings worth it?

The table below will illustrate the savings:

 

Taxable Profit Small Business Tax STD Business Tax Tax Saving
0 – 75 000 0 21 000 21 000
75 001 – 365 000 21 000 102 200 81 200
365 001 – 550 000 59 150 154 000 94 850
Above 550 001 28% 28% Nothing from this point
       

 

Besides the Income Tax savings, how else to you gain from being a Small Business Corporation?

  • SBC’s are allowed to depreciate their productive assets at a faster rate than other businesses. Depreciation, although not a physical cash cost, is captured as an expense on your income statement thereby reducing your profit and as you can see from the table above, smaller profits equals less tax.

 

  • Shareholders of SBC’s who pay the maximum rate (i.e. 41%) on their income, have the opportunity to gain a tax benefit by using a mixture of salary and dividends.

As you can see the correct tax planning will save both you and your business money, therefore when chatting to your advisor be very open about your goals and how you plan to reach them.

The more information we have the better we can assist you with a suitable plan, however please bear in mind that although we advise you not to obsess about your tax planning, you should review your plan every six months at least.

At Phezulu VBO we do more than just assist clients with planning their taxes, we are your “one stop SME shop”, assisting with everything from Accounting, Business Management, BEE, Consulting, Company Registration to Payroll and Mentoring.

For more information, please visit our website www.phezulu.net or give us a call on 010 003 8558

Recommended Posts

Leave a Comment

Start typing and press Enter to search