In a country in which unemployment has now risen by over 2% and business development is central to job creation and economic growth, a change in tax regime is of critical importance. That is why we are paying attention to the turnover tax regime and why startups now face an even greater challenge.
The conventional turnover tax regime was designed with the empowerment of young business, exempting them from paying tax and absorb financial difficulty and loss of profit until growth is attained.
We have to be aware of the current state of affairs. Today there is criticism levelled against turnover tax changes and the fact that startups are now paying tax.
As Moneyweb reports, the change in the system means qualifying businesses (those with a turnover of R1 million or less) must deal with a single tax to replace normal (income and corporate) tax, capital gains tax and dividends tax.
The criticism is about how the new regime impacts on tax payment, income and cash flow of micro-businesses.
Commentators have also said that the rules governing micro business tax and compliance is complicated, which does not help.
Our job is to make sure that entrepreneurs and business owners who are trying to build their ventures are empowered with knowledge and practical advice.
We have the expertise and understanding of the entire turnover tax regime to help our clients. It is only through knowledge, careful consideration and practical understanding that business owners can make real progress in terms of tax compliance.
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