Turnover tax for micro businesses in South Africa

What it is

Turnover tax is a simplified tax for micro businesses. It replaces income tax, provisional tax, capital gains tax and dividends tax with a single tax on your turnover (sales), not your profit. Figures as checked on sars.gov.za, October 2026 — confirm the current year's table before you register.

How the rates work

Turnover tax uses a sliding scale. The first band of turnover is taxed at 0% and the rate then rises step by step to a few percent on the top band. SARS publishes the exact bands each year in its turnover tax tables.

When it makes sense

• Your expenses are low, so tax on turnover is cheaper than tax on profit
• You want less admin: two interim payments and one annual return
• Don't choose it if you have big deductible costs. You can't claim expenses under turnover tax

Official source

SARS: Turnover Tax (sars.gov.za, search "turnover tax"). Talk to a registered tax practitioner if you're unsure.