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What is the qualifying criteria for a small business corporation?

10 March 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: Can I please be provided with the criteria to identity a small business corporation in terms of the new Tax Administration Act.

I know that they cannot be more than 1 member of a business but need to get a bit more clarity going forward.

A: The small business corporation is defined in section 12E of the Income Tax Act, while a microbusiness (for turnover tax purposes) is defined in the 6th Schedule to the same Act.

Please click on the following link to access the Income Tax Act:

http://tools.sars.gov.za/WebTools/LNB/sarsLegislation.asp

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


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