Turnover Tax (South Africa)

Turnover tax in South Africa is a simplified tax regime designed for small businesses with annual turnover up to R1 million. Instead of calculating tax on profit, businesses pay a fixed percentage of their total sales (turnover), making compliance easier. The rate varies based on the turnover size, and the tax replaces the regular income tax for eligible small enterprises. This system aims to reduce administrative burdens and support small business growth by providing a straightforward, predictable tax structure.