Category: Sixth Schedule – Determination of turnover tax payable by micro businesses

SIXTH SCHEDULE

 

Sixth Schedule added by section 28 of Act 90 of 1972, amended by section 27 – section 41 of Act 65 of 1973, section 63 – section 68 of the Act 85 of 1974, section 37 of Act 69 of 1975, section 19 of Act 101 of 1978, section 29 of Act 96 of 1981, section 58 and section 59 of Act 94 of 1983, section 45 of Act 121 of 1984, section 21 – section 25 of Act 96 of 1985, section 31 and section 32 of Act 65 of 1986 and section 26 and section 27 of Act 85 of 1987, repealed by section 51 of Act 113 of 1993 and inserted by section 71 of Act 60 of 2008 effective on 1 March 2009.

Sixth Schedule Index

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Sixth Schedule Index

PART I

Paragraph 1 – Definitions

PART II

Paragraph 2 – Persons that qualify as micro business

Paragraph 3 – Persons that do not qualify as micro business

Paragraph 4 – Permissible shares and interests

PART III

Paragraph 5 – Taxable turnover

Paragraph 6 – Inclusions in taxable turnover

Paragraph 7 – Exclusions from taxable turnover

PART IV

Paragraph 8 – Registration

Paragraph 9 – Voluntary deregistration

Paragraph 10 – Compulsory deregistration

PART V

Paragraph 11 – Interim payments

Paragraph 12 – [Repealed]

PART VI

Paragraph 13 – Amounts received by a connected person may be included in qualifying turnover

Paragraph 14 – Record keeping

Paragraph 15 – [Repealed]

Paragraph 5 (Sixth Schedule) – Taxable turnover

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5.    TAXABLE TURNOVER

 

The taxable turnover of a registered micro business in relation to any year of assessment consists of all amounts not of a capital nature received by that registered micro business during that year of assessment from carrying on business activities in the Republic, including amounts described in paragraph 6 and excluding amounts described in paragraph 7, less any amounts refunded to any person by that registered micro business in respect of goods or services supplied by that registered micro business to that person during that year of assessment or any previous year of assessment.

Paragraph 6 (Sixth Schedule) – Inclusions of taxable turnover

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6.     INCLUSIONS IN TAXABLE TURNOVER

 

The taxable turnover of a registered micro business includes-

 

(a)     50 per cent of all receipts of a capital nature from the disposal of-

 

(i)      immovable property mainly used for business purposes, other than trading stock; and

 

(ii)     any other asset used mainly for business purposes, other than any financial instrument; and

 

(b)     in the case of a company, investment income (other than dividends and foreign dividends).

“Investment income” definition of Sixth Schedule

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“investment income” means-

(i)      any income in the form of annuities, dividends, foreign dividends, interest, rental derived in respect of immovable property, royalties, or income of a similar nature; and

[Paragraph (i) substituted by section 68 of Act 23 of 2018 effective on 17 January 2019]

(ii)     any proceeds derived from the disposal of financial instruments;

“Professional service” definition of Sixth Schedule

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“professional service” means a service in the field of accounting, actuarial science, architecture, auctioneering, auditing, broadcasting, consulting, draftsmanship, education, engineering, financial service broking, health, information technology, journalism, law, management, real estate broking, research, sport, surveying, translation, valuation or veterinary science;

“Qualifying turnover” definition of Sixth Schedule

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‘qualifying turnover’ means the total receipts from carrying on business activities, excluding any-

               

(a)     amount of a capital nature; and

(b)     amount exempt from normal tax in terms of section 10(1)(zK) or 12P;

[Paragraph (b) substituted by section 88 of Act 25 of 2015 and section 64 of Act 15 of 2016 effective on 19 January 2017]