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2012 company income tax

Micro / Small businesses

Tax rates for micro businesses were adjusted on the 1 March 2011 so that a micro business only becomes liable for pay turnover tax if their turnover exceeds R150 000 (previous year was R100 000) per annum. This means that the first R150 000 turnover will be tax free.

Taxable turnover (R)

 2010/11 Rates of tax

 Taxable turnover (R)

 2011/12 Rates of tax

  R0 – R100 0000

 0% of each R1

 R0 – R150 000

 0% of each R1

 R100 001 – R300 000

 1% of the amount above R100 000

 R150 001 - R300 000

 1% of the amount above R150 000

 R300 001 – R500 000

 R2 000 3% of the amount above R300 000

 R300 001 – R500 000

 R1 500 2% of the amount above R300 000

 R500 001 – R750 000

 R8 000 5% of the amount above R500 000

 R500 001 – R750 000

 R5 500 4% of the amount above R500 000

 R750 001 and above

 R20 500 7% of the amount above R750 000

 R750 001 and above

 R15 500 6% of the amount above R750 000

(table taken from SARS website)

Large businesses

The Large Business Center was created as a dedicated facility to provide services (across all tax categories) to the large corporation. As priority, the Large Business Centre has set out to establish good relationships with these organizations and corporations to enable foreign investment and encourage business growth. Their clients are listed companies on the Johannesburg Securities Exchange and as well as their subsidiaries. The client base also includes all unlisted companies and their subsidiaries with turnover above R250 million; parastatals; major financial institutions; multinational corporations and their local branches and individuals with a high net worth.

Dividend tax

Dividend tax implementation will take effect on the 1 st April 2012 replacing the secondary tax on companies. There will also be a closure of dividend schemes as several dividend schemes undermine the tax base, so all schemes will be closed by treating the dividends as ordinary revenue.

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