When is a CC liable 2 pay tax to SARS?

By Marc Sevitz · Updated

Zalima

Zalima said:
1 September 2015 at 20:45

From how much profits is a CC tax compliant?
TaxTim Marc

TaxTim Marc said:
2 September 2015 at 11:19

If the CC qualifies as a Small Business Corporation (SBC) for tax purposes, then the first R73,650 of taxable income is tax free and thereafter, taxes are taxed on a sliding scale starting at 7%.

However, if the CC is not a Small Business Corporation, then all profits (i.e income less expenses) are taxed at 28%. There is no exemption.

Please use link below to see if your CC qualifies as a SBC for tax purposes.
Is my Business a Small Business Corporation?