Turnover Tax
Quick Answer
What is Turnover Tax?
Turnover tax is a simplified SARS tax for micro businesses: 0% to 3% of turnover, replacing income tax, CGT and dividends tax.
Turnover Tax explained
Available to businesses with qualifying turnover of R2.3 million or less (from 1 April 2026). The first R600,000 of turnover is taxed at 0%. Election is voluntary via the SARS Online Query System.
Who it applies to: Micro businesses – sole proprietors, partnerships, CCs and companies under the ceiling.
Cost: Free to elect; the tax is a small percentage of turnover.
Related terms and guides
- What Is Turnover Tax in South Africa? (2026 Rules)
- Free Turnover Tax Calculator (Micro Businesses, 2026/27)
Official source: SARS (South African Revenue Service)
Always verify this information with official South African government sources. Rules, fees and thresholds change. Check SARS, CIPC, the Department of Employment and Labour or gov.za before you act.
About BizAnswers: BizAnswers is a privately owned South African company – not a government department. Our guides are free to read and show you how to do things yourself through official channels. If you would rather have the paperwork handled for you, we assist individuals and businesses with filing their South African tax returns and staying compliant, which is a paid service, not a free government service. Contact us for help.
Last reviewed: September 2026 by the BizAnswers editorial team. How we write and check our guides.
