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25 of Act 96 of 1985, section 31 and section 32 of Act 65 of 1986 and section 26 and section 27 of Act 85 of 1987, repealed by section 51 of Act 113 of 1993 and inserted by section 71 of Act 60 of 2008 effective on 1 March 2009.

Paragraph 9 (Sixth Schedule) – Voluntary registration

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9.     VOLUNTARY DEREGISTRATION

(1)     A registered micro business may elect to be deregistered before the beginning of a year of assessment or such later date during that year of assessment as the Commissioner may prescribe by notice in the Gazette.

(2)     A registered micro business that elects to be deregistered under subparagraph (1) must be deregistered by the Commissioner with effect from the beginning of that year of assessment.

(3)     ………..

[Subparagraph (3) deleted by section 72 of Act 43 of 2014 effective on 1 January 2016]

Paragraph 10 (Sixth Schedule) – Compulsory deregistration

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10.     COMPULSORY DEREGISTRATION

(1)     A registered micro business must notify the Commissioner within 21 days from the date on which-

(a)     the qualifying turnover of that registered micro business for a year of assessment exceeds the amount described in paragraph 2, or there are reasonable grounds for believing that the qualifying turnover will exceed that amount; or

(b)     that registered micro business is disqualified in terms of paragraph 3.

(2)     The Commissioner must, subject to subparagraph (3), deregister a registered micro business with effect from the beginning of the month following the month during which the event as described in subparagraph (1)(a) or (1)(b) occurred. 

(3)     If the increase in the qualifying turnover of that person to an amount greater than the amount described in paragraph 2 is of a nominal and temporary nature, the person must apply to the Commissioner for a decision whether the person must remain a registered micro business or not.

[Subparagraph (3) substituted by section 90 of Act 25 of 2015 effective on 8 January 2016]

Paragraph 11 (Sixth Schedule) – Interim payments

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11.    INTERIM PAYMENTS

(1)     A registered micro business must, within six calendar months from the first day of the year of assessment-

(a)     estimate the taxable turnover for the year of assessment;

(b)     calculate the amount of tax payable on the estimated taxable turnover; and

(c)     pay an amount equal to 50 per cent of the amount of tax so calculated.

(2)     The estimate described in paragraph (1)(a) may not be less than the taxable turnover of the previous year of assessment unless the Commissioner, on application by the taxpayer and having regard to the circumstances, approves a lower estimate.

[Subparagraph (2) substituted by section 91 of Act 25 of 2015 effective on 8 January 2016] 

(3)     Where full payment of the amount described in subparagraph (1)(c) is not received by the Commissioner within six calendar months from the first day of the year of assessment, interest at the prescribed rate is payable from the first day after the six calendar months to the earlier of the date on which the shortfall is received and the last day of the year of assessment.

(4)     A registered micro business must, by the last day of the year of assessment-

(a)     estimate the taxable turnover for the year of assessment;

(b)     calculate the amount of tax payable on the estimated taxable turnover; and

(c)     pay an amount equal to the amount of tax so calculated less the amount paid in terms of subparagraph (1).

(4A)   For the purposes of paragraph 2(1) of the Fourth Schedule, section 89bis(2), section 6 of the Skills Development Levies Act, 1999 (Act No. 9 of 1999), and section 8 of the Unemployment Insurance Contributions Act, 2002 (Act No. 4 of 2002), a registered micro  business may elect to pay the amounts deducted or withheld in terms of that paragraph or those sections to the Commissioner-

(i)      with regard to amounts deducted or withheld during the first six calendar months from the first day of the year of assessment, within seven days after the end of such period; and

(ii)     with regard to amounts deducted or withheld within the next six calendar months following the period in item (i), within seven days after the end of such period.

(4B)   If a registered micro business has made an election in terms of subparagraph (4A), the election must apply to all amounts deducted or withheld in terms of the applicable provisions referred to in that subparagraph.

(5)     Where full payment of the amount described in subparagraph (4)(c) is not received by the Commissioner by the last day of the year of assessment, interest at the prescribed rate is payable from the day following the last day of the year of assessment to the earlier of the date on which the shortfall is received and the due date of the assessment for that year of assessment.

(6)     Where the estimate described in subparagraph 4(a) is less than 80 per cent of the taxable turnover for the year of assessment, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to 20 per cent of the difference between the tax payable on 80 per cent of the taxable turnover for the year of assessment and the tax payable on that estimate must be charged.

[Subparagraph (6) substituted by section 271 of Act 28 of 2011 effective on 1 October 2012 and section 26 of Act 21 of 2012 effective on 20 December 2012 – comes into operation in terms of section 26 of Act 21 of 2012 as amended by section 67 of Act 44 of 2014]

(7)     Where the Commissioner is satisfied that the estimate described in subparagraph (4)(a) was not deliberately or negligently understated and was seriously made based on the information available, or is partly so satisfied, the Commissioner must waive the penalty charged in terms of subparagraph (6) in full or in part.

[Subparagraph (7) substituted by section 26 of Act 21 of 2012 effective on 20 December 2012 – comes into operation in terms of section 26 of Act 21 of 2012 as amended by section 67 of Act 44 of 2014]

(8)     Where the Commissioner has issued an assessment in respect of the payment required in terms of subparagraph (4), a penalty must not be imposed in terms of subparagraph (6).

12.       ……….

Paragraph 13 (Sixth Schedule) – Amounts received by a connected person may be included in qualifying turnover

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13.     AMOUNTS RECEIVED BY A CONNECTED PERSON MAY BE INCLUDED IN QUALIFYING TURNOVER

The total amount received from carrying on business activities by a connected person in relation to a person described in paragraph 2(1)(a) or (b) must be included in the qualifying turnover of that person for purposes of applying paragraph 2–

[Words preceding paragraph (a) substituted by section 92 of Act 25 of 2015 effective on 8 January 2016]

(a)     the connected person carries on business activities that should properly be regarded as forming part of the business activities carried on by that person; and

(b)     the main reason or one of the main reasons for the connected person carrying on business activities in the way that the connected person does is to ensure that the qualifying turnover of that person does not exceed the amount as described in that paragraph.

Paragraph 14 (Sixth Schedule) – Record keeping

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14.     RECORD KEEPING

 

Notwithstanding the provisions of Part A of Chapter 4 of the Tax Administration Act, a registered micro business must only retain a record of-

 

(a)     amounts received by that registered micro business during a year of assessment;

 

(b)     dividends declared by that registered micro business during a year of assessment;

 

(c)     each asset of that registered micro business as at the end of a year of assessment with a cost price of more than R10 000; and

 

(d)     each liability of that registered micro business as at the end of a year of assessment that exceeded R10 000.