• “Micro business presumptive turnover tax” - if your turnover is under R1m, you may qualify for a move to this system, which replaces income tax, CGT, STC and VAT. There is a potential tax saving, and certainly less compliance cost and administrative burden – but for some businesses it will still be better to stick with the current system, so take advice before jumping in.
• The compulsory VAT registration threshold increases to R1m from 1 March.
• Provisional tax – your second provisional tax payment can no longer be based on your last assessment, but must now be no less than 80% of actual income to avoid penalties (there is a one-off concession by SARS for payments due by 28 February 2009 only).
• Fringe benefit tax is no longer payable on employees’ personal use of employer-provided “telephone or computer equipment which the employee uses mainly for the purposes of the employer’s business” – that should cover cell phones, laptops, modems etc.
• STC payable by the company will be replaced by a dividend tax payable by the shareholder. Although this change is only likely to come into effect later this year or in 2010, your current tax planning should take it into account - the definition of “dividend” will be widened, and the effective cost to shareholders will increase.