Turnover Tax Calculator South Africa

Turnover tax is a simplified tax system introduced by SARS for micro businesses with a qualifying turnover of R2.3 million or less per year. It replaces income tax, VAT, provisional tax, capital gains tax, and dividends tax with a single low-rate tax based on turnover.

Sole proprietors, partnerships, close corporations, companies, and co-operatives with a qualifying turnover of R2.3 million or less per year may register. However, certain businesses are excluded, such as professional service providers, labour brokers, personal service providers, and businesses carrying on other excluded activities.

Not necessarily. Turnover tax is based on revenue (turnover), not profit. For businesses with high expenses and low profit margins, normal income tax (which is based on taxable profit) may actually result in lower tax. The calculator above helps you compare both options.

No. Under the turnover tax system, you pay tax on your total turnover without deducting business expenses. This simplifies record-keeping but can be disadvantageous for businesses with high operating costs.

You can register for turnover tax through SARS eFiling or at a SARS branch. You must elect to be a micro business at the start of your year of assessment. Once registered, you remain in the system unless you voluntarily deregister or your turnover exceeds R2.3 million.