PART IV
Turnover tax payable by micro businesses
Category: PART IV – Turnover tax payable by micro businesses (ITA)
Section 48 (ITA) – Definitions
48. Definitions
For purposes of this Part, unless the context otherwise indicates, any word or expression that has been defined in section 1 shall bear the meaning so defined and any word or expression that has been defined in the Sixth Schedule shall bear the meaning so defined.
Section 48A – Imposition of tax
48A. Imposition of tax
There must be levied and paid for the benefit of the National Revenue Fund a tax, to be known as the turnover tax, payable by a person that was a registered micro business during a year of assessment, in respect of its taxable turnover for that year of assessment.
Section 48B – Rates
48B. Rates
(1) The rates of tax chargeable in terms of section 48A must be fixed annually by Parliament.
(2) The rates fixed by Parliament in respect of any year of assessment continue to apply until the next such determination of rates and will be applied for the purposes of calculating the tax payable in respect of the taxable turnover of a registered micro business during the next succeeding year of assessment if, in the opinion of the Commissioner, the calculation and collection of the tax chargeable in respect of such taxable turnover cannot without the risk of loss of revenue be postponed until after the rates for that year have been determined.
Section 48C – Transitional provisions
48C. Transitional Provisions
(1) Where an amount-
(a) was received by a person during a year of assessment when it was a registered micro business;
(b) was included in that person’s taxable turnover for that year of assessment; and
(c) accrues to that person when it is no longer a registered micro business,
that amount must not be taken into account as a receipt or accrual for purposes of determining the taxable income of that person.
(2) Where an amount-
(a) accrued to a person when it was a registered micro business;
(b) would have been included in that person’s taxable turnover had it been received on the date that it accrued; and
(c) is received by that person when it is no longer a registered micro business,
10 per cent of that amount must be included in the taxable income of that person for the year of assessment in which it is received.
[Words following paragraph (c) to be substituted by section 67 of Act 25 of 2015 effective on 1 March 2015]
(3) Where a registered micro business is deregistered, any trading stock held and not disposed of by it as at the date with effect from which it is deregistered shall, for purposes of the application of section 22, be deemed to have been trading stock held and not disposed of by it at the beginning of the year of assessment within which that date falls.
(4) Where in the course of a year of assessment a registered micro business is deregistered in terms of paragraph 10(2) of the Sixth Schedule and a person becomes liable for payment of tax in terms of section 5 in respect of the taxable income of that deregistered micro business, that person is exempt from any penalties for underpayment of tax for which that person, solely as a result of becoming so liable in respect of that taxable income, would otherwise become liable under the Fourth Schedule to this Act or Chapter 15 of the Tax Administration Act.
[Subsection (4) added by section 3 of Act 13 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]
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