Not Small Business where the criteria is entire shareholding for the entire year by natural persons, gross income below 20 million, not personal service provider, none of the shareholders at any time during the year held shares or interest in any other co
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
We are not sure what further guidance you require here.
The “an entire direct interest in a company” is the interest of the individual in the company (the one-third interest). And the word ‘entire’ means that all the shares held must be disposed of during a year of assessment.
We are not sure where the R20 million comes from. Remember it is the company which must qualify as a small business. So, the market value of all its assets, as at the date of the disposal of the interest must not exceed R10 million.