Use our free Turnover Tax Qualification Checker to get an instant indication based on the current SARS 2026/27 qualifying criteria.
Turnover Tax is a simplified tax regime for qualifying South African micro-businesses. From 1 April 2026, the qualifying turnover limit increased from R1 million to R2.3 million, and the tax-free threshold increased to R600,000.
Turnover Tax is a simplified tax system designed for qualifying small businesses. Instead of calculating normal income tax on taxable profit, Turnover Tax is calculated primarily by applying prescribed rates to taxable turnover.
SARS states that the regime can apply to sole proprietors, partnerships, close corporations, companies and co-operatives that meet the qualifying requirements.
| Taxable turnover | Turnover Tax |
|---|---|
| R0 – R600,000 | 0% |
| R600,001 – R950,000 | 1% of the amount above R600,000 |
| R950,001 – R1,400,000 | R3,500 + 2% of the amount above R950,000 |
| R1,400,001 – R2,300,000 | R12,500 + 3% of the amount above R1,400,000 |
Your qualifying turnover must not exceed R2.3 million for the relevant year of assessment.
The regime can apply to qualifying sole proprietors, partnerships, close corporations, companies and co-operatives.
Professional-service income is restricted. For a natural person, it may not exceed 20% of total receipts. For a company, CC or co-operative, professional-service income together with investment income may not exceed 20%.
There are additional rules concerning ownership, personal service providers/labour brokers, asset disposals, PBOs and previous Turnover Tax registration.
Answer all questions below. The checker will tell you whether you appear to meet the SARS qualifying criteria.
Qualifying for Turnover Tax doesn't automatically mean it's your cheapest option. Depending on your profit margins, operational expenses, and VAT status, normal income tax might actually save you more money.
BML Accounting & Tax can help analyze your numbers to determine the most tax-efficient structure for your business.
