What is Turnover Tax in South Africa?

Turnover Tax (TOT) is a simplified tax system for South African micro-businesses with annual turnover under R2.3 million (from 1 March 2026). Instead of tracking expenses and paying up to 45% income tax, you pay 0–3% of your gross turnover.

Who qualifies for Turnover Tax in South Africa?

Any South African micro-business — sole trader, partnership, close corporation, or company — with an annual turnover under R2.3 million (from 1 March 2026) may qualify, subject to SARS eligibility criteria.

How much can I save with Turnover Tax?

Businesses earning under R600,000 per year pay zero turnover tax. A business earning R800,000 could pay as little as R2,000 in Turnover Tax, compared to R40,000–R100,000 under standard individual or company tax rates.

Does Turnover Tax replace VAT?

Turnover Tax replaces income tax, provisional tax, and Capital Gains Tax. VAT registration is separate and depends on your specific turnover threshold.

🇿🇦 South African Small Business Tax

Keep more of what
your business earns

Turnover Tax lets South African micro-businesses pay as little as 0–3% tax on turnover — instead of up to 45% on income. Discover if you qualify.

💰 Calculate My Savings Learn How It Works

Tax below R600k turnover (2027)

Max rate on turnover

R2.3M

New threshold from March 2026

The Basics

What is Turnover Tax?

A simplified, affordable tax regime designed specifically for South Africa's smallest businesses.

Turnover Tax (TOT) is a special tax system introduced by SARS for micro-businesses with an annual turnover under R1 million (rising to R2.3 million from 1 March 2026). Instead of the complex process of tracking expenses, calculating taxable profit, and filing multiple returns, you simply pay a small percentage of your gross turnover.

This system replaces income tax, provisional tax, and CGT in one simple payment. It's SARS's way of reducing the burden on South Africa's hardest-working entrepreneurs.

Replaces income tax, provisional tax & CGT

No expense tracking required — tax on gross turnover only

Available to sole traders, partnerships, companies & close corporations

Simplified bi-annual provisional payments

📊 Current Rates (2027: 1 March 2026 – 28 Feb 2027)

R0 – R600,0000%

R600,001 – R950,0001% above R600k

R950,001 – R1,400,000R3,500 + 2% above R950k

R1,400,001 – R2,300,000R12,500 + 3% above R1.4M

⬆ Threshold increased from R1M to R2.3M effective 1 March 2026. Source: SARS.gov.za

A Brief History

How Turnover Tax came to be

Two decades of SARS simplifying tax for South Africa's small business owners.

2008

The Birth of Turnover Tax

SARS introduced the Turnover Tax system to reduce the tax compliance burden on micro-businesses. The initial threshold was set at R1 million turnover, with the goal of formalising South Africa's large informal economy and supporting small business growth.

2009–2013

Gradual Adoption & Refinement

The scheme gained traction as awareness grew. SARS refined the qualifying criteria, clarifying which business types and structures were eligible. Sole proprietors, partnerships, close corporations and companies under R1M in turnover all qualified.

2014

Rate Adjustments

SARS introduced revised rate tables to better align the tax burden with business size. The new structure introduced a R335,000 zero-rated threshold, ensuring the smallest micro-businesses paid nothing at all.

2021–2024

Stability & Consistency

For several consecutive years, SARS kept the rates unchanged — signalling confidence in the framework. Businesses in the R0–R335k bracket continued to enjoy zero tax liability, while those up to R750k faced a maximum effective rate well below company or individual tax rates.

2026

Major Threshold Expansion

In a landmark move effective 1 March 2026, the turnover threshold was raised from R1 million to R2.3 million, dramatically expanding access. The zero-rated band also grew to R600,000 — meaning a business earning R600k per year pays zero tax. A major win for South African small businesses.

Why It Matters

The Tax Savings Explained

Compare what you'd pay under Turnover Tax versus standard Individual or Company tax rates.

Standard Option

Individual Tax

18–45%

On taxable income (profit)

Based on net profit (after expenses)
Deductions & rebates available
Standard annual filing
Up to 45% on income above R1.85M

✨ Best for Micro Biz

Turnover Tax

0–3%

On gross turnover

R0 tax if turnover under R600k
Max 3% of turnover above R1.4M
No expense tracking needed
Replaces income, CGT & provisional tax

Standard Option

Company Tax

27%

Flat rate on taxable profit

Fixed 27% on all taxable profit
Full deduction of business expenses
SBC rates available (0–27%)
Dividends tax also applies on payout

💡 What could you do with the savings?

A small business with R800,000 turnover could save R40,000–R120,000 per year compared to standard company or individual tax. That money could be reinvested into:

🛠️ New Equipment

👥 Extra Staff

📣 Marketing

📦 More Stock

💻 Technology

📈 Business Growth

Tax Estimator

Calculate Your Tax Saving

Get a quick estimate of how much Turnover Tax could save your business.

Annual Turnover (R) Annual Business Expenses (R) — for comparison Your Personal Tax Bracket

Your Estimate

Annual Turnover—

Turnover Tax (TOT)—

Estimated Individual Tax—

Company Tax (27%)—

* This is an indicative estimate only. Consult a registered tax professional for advice specific to your situation.

Our Services

You run your business. We handle the tax.

From checking if you qualify, to registering with SARS, to keeping your records in order — TurnSmart Tax takes care of everything. All you have to do is focus on what you do best.

Our Promise

"You focus on running your business. We'll handle every step of the tax process — from start to finish."

Get Started Free →

🔍

Eligibility Check

We assess your business structure, turnover, and circumstances to confirm whether Turnover Tax is the right fit for you — and how much you stand to save. No guesswork, no surprises.

📋

SARS Registration

We handle the full SARS eFiling registration and Turnover Tax election process on your behalf. Paperwork, submissions, confirmations — all done. You won't need to log into eFiling once.

📁

Record Keeping

We set up and maintain simple, SARS-compliant records of your turnover. No complicated bookkeeping. No spreadsheet headaches. Just clean records that keep you protected and compliant year-round.

💳

Provisional Tax Payments

We calculate and submit your bi-annual provisional tax payments to SARS on time, every time. No late penalties, no missed deadlines. We remind you, handle it, and keep you in the clear.

📞

Ongoing Support

Tax laws change. Your business grows. We stay on top of SARS updates and proactively advise you when something affects your tax position — so you're never caught off guard.

🚀

Ready to get started?

Book a free 30-minute call. We'll assess your situation and give you a clear picture — no jargon, no obligation.

Book Free Call →

Getting Started

How to Register & Pay

Switching to Turnover Tax is straightforward. Here's what the process looks like.

Check Eligibility

Confirm your annual turnover is under R2.3M (from March 2026) and you're not in an excluded industry (e.g. professional services companies).

Log into SARS eFiling and elect to be taxed under the Turnover Tax system. You can do this at the start of a tax year.

Track Turnover Only

You only need to record your gross income — no detailed expense tracking required. Simple record-keeping is all it takes.

Pay & Prosper

Make two provisional payments per year based on your turnover. Reinvest the savings back into growing your business.

Client Stories

Real businesses. Real savings.

South African small business owners just like you — paying less, stressing less.

I had no idea I qualified for Turnover Tax. TurnSmart Tax checked my eligibility, registered me with SARS, and now I pay almost nothing on my R480k turnover. I wish I'd found them years ago.

Saved R28,000 this year

★★★★★

Nomsa M.

Catering Business, Johannesburg

As a plumber running my own business, I had zero time for tax admin. TurnSmart handled everything — registration, records, the lot. I just focus on my work. Best decision I've made for my business.

Saved R41,500 this year

★★★★★

Thabo K.

Plumbing Services, Pretoria

I was paying company tax at 27% and didn't know there was a better option. TurnSmart showed me the numbers, switched me over, and I now pay 3% on turnover. The WhatsApp support is incredibly helpful too.

Saved R55,000 this year

★★★★★

Sandra V.

Online Retail, Cape Town

🛡️ Zero risk. Our free consultation costs you nothing. If Turnover Tax isn't right for you, we'll tell you honestly — and point you to the best alternative.

Book My Free Consultation →

⏰

Don't Miss the SARS February Deadline

SARS requires Turnover Tax elections to be submitted before the end of February each year. If you miss this window, you'll be taxed at the standard individual or company rate for the full year — no exceptions.

Don't leave money on the table. Start the process now so we have enough time to check your eligibility and get you registered before the deadline.

✅ Check My Eligibility Now

Brand Naming

Choose Your Brand Name

Click a name to select it. These are all available, friendly, and positioned around the Turnover Tax space.

TurnSmart Tax

Smart, modern, implies turning your tax situation around intelligently.

⭐ Selected

TaxTurn SA

Direct, memorable, emphasises South African focus.

⭐ Selected

TurnoverSimple

Approachable and reassuring — "simple" is what small biz owners want.

⭐ Selected

SmallBiz Tax Hub

Community feel, positions as a go-to resource for small businesses.

⭐ Selected

TaxEase SA

Ease and simplicity at the forefront — no jargon, just clarity.

⭐ Selected

MicroTax Pro

Speaks directly to micro-businesses, professional tone.

⭐ Selected

TurnoverWise

Implies wisdom and good financial decisions — trustworthy feel.

⭐ Selected

SaveMyTax ZA

Emotionally direct — exactly what business owners are searching for.

⭐ Selected

TOT Guide SA

Uses the official acronym (TOT), positions as the authority guide.

⭐ Selected

ZeroToTurnover

Playful, refers to the 0% band — memorable and explains the benefit.

⭐ Selected

TaxFlip SA

Punchy, implies flipping your tax situation in your favour.

⭐ Selected

PocketMore Tax

Consumer-friendly, outcome-focused — "keep more in your pocket".

⭐ Selected

Get in Touch

Ready to Pay Less Tax?

Book a free consultation and find out if Turnover Tax is right for your business.

Contact Us

Phone +27 (0) 00 000 0000

Email hello@yoursite.co.za

Location South Africa (Online & In-person)

f in li wa

📅 Book a Free Consultation

Not sure if Turnover Tax is right for you? Book a free 30-minute call with one of our advisors. No jargon. No pressure. Just straight answers.

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Keep more of whatyour business earns

What is Turnover Tax?

📊 Current Rates (2027: 1 March 2026 – 28 Feb 2027)

How Turnover Tax came to be

The Tax Savings Explained

💡 What could you do with the savings?

Calculate Your Tax Saving

Your Estimate

You run your business. We handle the tax.

"You focus on running your business. We'll handle every step of the tax process — from start to finish."

Eligibility Check

SARS Registration

Record Keeping

Provisional Tax Payments

Ongoing Support

Ready to get started?

How to Register & Pay

Real businesses. Real savings.

Don't Miss the SARS February Deadline

Choose Your Brand Name

Ready to Pay Less Tax?

Contact Us

📅 Book a Free Consultation

Keep more of what
your business earns