Taxation of SMMEs
Presenters : Prof. Jackie Arendse
Overview
The small business sector is a vitally important part of the South African economy, particularly considering the critical need to create jobs and promote economic growth. Tax incentives for SMMEs were introduced in the early 2000s, and the Davis Tax Review Committee scrutinised tax policy relating to SMMEs in 2014. However, no new or expanded tax incentives have been introduced for SMMEs in recent years.
With limited resources and significant tax risks, SMMEs face considerable challenges in applying the tax legislation. Compliance costs are disproportionate compared to larger businesses, and mistakes can be extremely costly!
This video seeks to assist small business owners, managers, and advisors in managing their tax affairs effectively. We focus on current tax issues particularly relevant to the SMME sector, covering available incentives, income tax, capital gains tax, dividends tax, and other tax areas specifically relevant in an SMME context.
We identify specific areas of tax risk that SMMEs need to watch out for and help you develop strategies to manage these risks, enabling you to avoid costly SARS penalties, interest, and disputes. We also explain the tax relief and planning opportunities available to SMMEs and show you how to access these.
The investment in watching this video will pay for itself many times over, as you will come away with a wealth of information that you can immediately apply to your business.
Video Content
This video focuses on the tax aspects of small businesses, including the following:
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Tax risk management for SMMEs
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Small business corporations – benefits and qualification criteria
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Turnover tax – definition and qualification criteria
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Sole traders, personal service providers, and trusts – tax risks and management strategies
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Dividends tax and the withholding obligation
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Tax pitfalls of interest-free and low-interest loans
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Provisional tax
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Tax administration provisions affecting SMMEs and strategies to manage SARS penalties and interest
Competencies Development
After watching this video, you will be able to:
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Identify tax risk priorities and develop strategies to manage them
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Access existing tax incentives for SMMEs
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Maintain tax compliance
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Manage SARS penalties and interest if they arise
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Perform accurate provisional tax calculations