How to Register for Turnover Tax

By Trev Gami •  Updated: 01/10/25 •  6 min read

Turnover tax is specifically meant for micro-businesses, and it consists of a simplified version to help them sort their tax obligations with relative ease. It replaced Income Tax, Provisional Tax, VAT, Dividends Tax, and Capital Gains Tax for small businesses with an annual turnover of R1 million or less. A tax rate is applied to the taxable turnover of your micro business to get a turnover tax. Read on to learn how to register for turnover tax.  

- ADVERTISEMENT -

Why Register for Turnover Tax?

If you operate a small business, you are required by the law to pay tax to SARS if you earn taxable income from your operations. If you qualify, you should register for turnover tax since it is designed to make life easier for small business operators when they handle their tax obligations. Remember to register for Pay-As-You-Earn (PAYE) if your company has qualifying employees. 

There are certain benefits you can get from registering for turnover tax. First and foremost, turnover tax reduces compliance and administrative challenges often faced by many small business operators. This will make your life easier when you file for your taxes. However, it is a good idea to consult a professional to help if you are not familiar with the concept of turnover tax.  

Another benefit of tax turnover is that it helps reduce rates since tax is calculated from your turnover, not profit. This means that your profit will not be taxed, which leads to more revenue for your business. Overall, your business will witness tax savings from turnover tax. 

How to Register for Turnover Tax

To register for turnover tax, you must first undertake a quick test provided by SARS to check if your business qualifies. If you are a partner in multiple businesses, you don’t qualify for tax turnover. If your answer is NO to any of the following questions, your business will not qualify.  

Here are the SARS questions that you should answer. 

  1. Will the “qualifying turnover” of the business be less than or equal to R1 million for the year of assessment?
  2. Do you declare that the business is not a “personal service provider” or a “labour broker” without a SARS exemption certificate?
  3. Does the business trade in one of the following forms: sole proprietor, partnership, closed corporation, co-operative, or company?
  4. If the business is a partnership, do you declare that all the partners will be individuals throughout the year of assessment?
  5. If the business is a close corporation, co-operative, or company, do you declare that all of the shareholders/members will be individuals throughout the year of assessment?
  6. Do you declare that the business is not a public benefit organization, recreational club, association of persons, or a small business funding entity?
  7. Does the business have a year of assessment that ends on the last day of February?
  8. Do you declare that the owner, any partner, shareholders, members, and the business do not hold shares/interests in a close corporation, company, or cooperative other than the following exceptions:

a) If you are a natural person, do you declare that the income from “professional services” is not expected to exceed 20% of your total receipts during the year of assessment?

b) If the business is a company, close corporation, or cooperative, do you declare that income from “professional services” and “investment income” is not expected to exceed 20% of the total receipts for the year of assessment?

  1. Do you declare that the income from the disposal of assets by the business over the year of assessment and the past two years of assessment is not expected to exceed R1.5 million in total?
  2. Do you declare that the business was not previously registered for the Turnover Tax?

You need to refer to SARS’ Tax Guide for Micro Business when completing the test. 

If your business qualifies to register for turnover tax, you need to complete the TT01 application form for turnover tax. You can either complete the form manually or online. When you have completed your form, you should submit it to SARS before the beginning of the assessment year, which runs from 1 March to 28 February in the following year. The commissioner may determine the submission date in a Government Notice. 

Submission times for new registrations and registered businesses differ slightly. If your micro business starts trading during the year of assessment, you should send an application within two months from the day it starts operating. Registered businesses should submit their applications before the beginning of each tax year. 

You can send an email to SARS or book an appointment on its eBooking system to submit your application. If your application form is incomplete, you will be notified and asked to provide full details, and this is when your application will be considered. You will also get a letter with the results of your application.  

Who Qualifies for Turnover Tax in South Africa?

Micro businesses with an annual turnover of  R 1 million or less. The following taxpayers may qualify:

How Much Is Turnover Tax?

The turnover tax has not changed from last year, and the current (1 March 2025 to 29 February 2025) is as follows:

If you operate a micro business that has an annual turnover of R 1 million or less, you qualify to register for turnover tax. This kind of tax is designed to improve compliance and other administrative issues.  More importantly, it reduces tax rates. However, you need to check first if you qualify to get turnover tax. 

- ADVERTISEMENT -

Keep Reading

How Does Auto-Assessment Work?

How Does Auto-Assessment Work?

Today we are unpacking some of the key aspects of this new system, and what you should know about it.

How to Activate Personal Income Tax

How to Activate Personal Income Tax

This tutorial will walk you through activating your personal income tax and submitting your tax return using SARS eFiling.

Are Medical Expenses Tax Deductible?

Are Medical Expenses Tax Deductible?

Are Medical Expenses Tax Deductible?. Today we will look at both of these in greater depth to assist you this tax season.

How Are SARS Penalties Calculated? 

How Are SARS Penalties Calculated? 

How Long Does SARS Take to Review Documents?

How Long Does SARS Take to Review Documents?

How Long Does SARSTake to Review Documents? Read on to learn how long it takes for SARS to review documents.

How to Apply For a SARS Tax Number

How to Apply For a SARS Tax Number

Apply For a SARS Tax Number. In this article, we will learn about SARS and its taxation, how to get your SARS number.

How to Get a Tax Reference Number From SARS

How to Get a Tax Reference Number From SARS

This tutorial will teach you everything you need to know about SARS tax reference numbers—including how to apply for one

What Is The Tax Threshold In South Africa?

What Is The Tax Threshold In South Africa?

Understanding the tax threshold is an integral part of financial planning.. Read on to find out all the details about the tax threshold in South Africa

List of SARS eFiling Forms

List of SARS eFiling Forms

List of SARS eFiling Forms. We've compiled this guide to the various forms available on eFiling and how to access them to help you.

When Can I Submit my SARS Tax Return?

When Can I Submit my SARS Tax Return?

When can I submit my SARS tax return? This article teaches you where you can submit your SARS tax returns.

What Is A SARS Completion Letter

What Is A SARS Completion Letter

Today we look more closely at the SARS completion letter, and what receiving one from SARS means for your overall tax affairs

How to Get a Tax Number in South Africa

How to Get a Tax Number in South Africa

Getting a tax number in South Africa is easiest when done through the eFiling portal. As part of the sign up process, you will be asked if you have it

How to Appeal Against SARS Penalties

How to Appeal Against SARS Penalties

Whether you're a business owner or an individual taxpayer, this guide can increase your chances of success in appealing against SARS penalties.  

How to File Tax Return On eFiling 2025?

How to File Tax Return On eFiling 2025?

How to File Tax Return On eFiling. This article explores how to file your tax return using SAR's online eFiling system.

How to Apply For SARS PBO

How to Apply For SARS PBO

In this article, we will be sharing more information on how to apply for SARS PBO, the registration process for PBO, and other relative topics.