Latest / Anele and the Club on 947 / A little-known tax break that could save your small business

Transcript

A little-known tax break that could save your small business · Anele and the Club on 947

• 0:00
  Speaker 1: Wake up with a bang.
• 0:02
  Speaker 2: Hey, wake up! Anele and the Club on 947. Let
• 0:07
  Speaker 2: us help you.
• 0:09
  Speaker 3: Did you know that there is a SAR system where
• 0:13
  Speaker 3: if you have a small business, you can bring in
• 0:16
  Speaker 3: 600,000 Rand in a year and pay zero income tax
• 0:20
  Speaker 3: on it.
• 0:21
  Speaker 1: How does that work? Is that what they say? First 600,000.
• 0:25
  Speaker 3: From the 1st of April, 2026, qualifying micro businesses, which
• 0:29
  Speaker 3: basically all of us have, right?
• 0:31
  Speaker 2: That's the side hustle.
• 0:33
  Speaker 1: Yeah, absolutely.
• 0:34
  Speaker 2: That's the side hustle.
• 0:35
  Speaker 3: There's like something small you're doing on the side. From
• 0:37
  Speaker 3: the 1st of April, 2026, qualifying micro businesses with annual
• 0:41
  Speaker 3: turnover of up to 2.3 million can opt into the
• 0:45
  Speaker 3: system where the first 600,000 Rand of turnover.
• 0:48
  Speaker 2: Is taxed at 0%.
• 0:51
  Speaker 3: Meaning a qualifying business can make up to R600, 000 in
• 0:53
  Speaker 3: turnover without paying turnover tax on that amount. And it
• 0:58
  Speaker 3: works differently from normal income tax. Instead of taxing your profit,
• 1:02
  Speaker 3: turnover tax is calculated on your turnover, essentially the money
• 1:05
  Speaker 3: your business receives from its business activities.
• 1:09
  Speaker 1: But this is the conversation, right, for small businesses. Because
• 1:12
  Speaker 1: a lot of us start our side hustles, as you say.
• 1:14
  Speaker 1: And we don't really know how the system works. We're
• 1:17
  Speaker 1: just sort of going with it. But lots of people
• 1:19
  Speaker 1: have lots of ways to save money or to save tax.
• 1:23
  Speaker 3: So wait, I did a bit of reading here. So
• 1:25
  Speaker 3: I'm going to read this. The mechanism works like this.
• 1:28
  Speaker 3: So instead of income tax on your profit, you pay
• 1:31
  Speaker 3: a percentage of everything the business takes in.
• 1:33
  Speaker 2: Below 600,000 Rand, that percentage is zero.
• 1:34
  Speaker 1: Okay.
• 1:34
  Speaker 3: From 600,000 to 950,000, that percentage is 1%. Okay.
• 1:37
  Speaker 4: Okay.
• 1:43
  Speaker 3: A business turning over 900,000 for the year pays 3,000 Rand,
• 1:47
  Speaker 3: not 3,000 Rand a month, just 3,000 Rand for that year.
• 1:51
  Speaker 2: But you have to opt in to this. It's not automatic.
• 1:54
  Speaker 3: You literally have to go to SARS and opt in
• 1:57
  Speaker 3: to this so that they are aware that you have
• 1:59
  Speaker 3: this little business, you're making this much, and then you
• 2:01
  Speaker 3: opt in to it.
• 2:02
  Speaker 1: Okay, so it's an optional thing.
• 2:03
  Speaker 4: Yes.
• 2:03
  Speaker 1: You've got to apply to SARS.
• 2:05
  Speaker 3: So it just doesn't automatically happen. So that's not how
• 2:07
  Speaker 3: your tax returns would be done automatically.
• 2:09
  Speaker 1: I wonder how many people have done this.
• 2:11
  Speaker 2: I don't think anyone.
• 2:11
  Speaker 3: Is doing it.
• 2:13
  Speaker 2: Don't look at me.
• 2:14
  Speaker 1: I don't have.
• 2:17
  Speaker 2: A small business on the side.
• 2:19
  Speaker 1: So this is not something I would pay attention to,
• 2:21
  Speaker 1: but I've got a lot of friends who do have
• 2:23
  Speaker 1: small business on the side who I'd be interested to
• 2:25
  Speaker 1: know if they knew this.
• 2:26
  Speaker 2: Because that's the thing.
• 2:27
  Speaker 3: If you have a catering business, you're selling wigs, right?
• 2:30
  Speaker 2: You're doing nails, right? You are doing the normal.
• 2:34
  Speaker 3: Tax returns for your business, whereas you really could be
• 2:37
  Speaker 3: saving a lot of money. And I think this is
• 2:38
  Speaker 3: SAR's way to free up cash for you so that
• 2:41
  Speaker 3: you can cloud back into your business. And then that
• 2:43
  Speaker 3: then guarantees business growth.
• 2:45
  Speaker 5: Now, I was just going to say, your wig lady
• 2:47
  Speaker 5: is going to benefit. I mean, you've worn 10 in
• 2:49
  Speaker 5: the last month.
• 2:50
  Speaker 1: Once again, that lady's, her turnover is about 5 million
• 2:53
  Speaker 1: a year.
• 2:53
  Speaker 2: I was going to say, so she doesn't qualify because
• 2:55
  Speaker 2: it has to be what?
• 2:56
  Speaker 3: 2.3?
• 2:56
  Speaker 2: Like, I don't know the girl you're wearing this morning.
• 2:59
  Speaker 2: I've never seen her.
• 3:00
  Speaker 1: She's beautiful.
• 3:02
  Speaker 2: She's so cute and bobby.
• 3:03
  Speaker 3: She's going back into her box after today.
• 3:07
  Speaker 2: I just want to know. And I mean, there's no
• 3:11
  Speaker 2: better way to say.
• 3:11
  Speaker 3: This because it's, 011-8838-947. In what ways are you benefiting
• 3:19
  Speaker 3: from SARS and you just know that no one else
• 3:21
  Speaker 3: knows about this? Because this year, if I didn't come
• 3:23
  Speaker 3: across this on Instagram, none of us would know about it.
• 3:28
  Speaker 1: Yeah.
• 3:28
  Speaker 3: On Instagram, guys, literally. And this was the headline that
• 3:32
  Speaker 3: then drew me into wanting to find out more about it.
• 3:34
  Speaker 3: It says, there is a SARS system where a small
• 3:37
  Speaker 3: business can bring in 600,000 Rand in a year and
• 3:41
  Speaker 3: pay zero income tax on it. I was like, you
• 3:43
  Speaker 3: have my attention.
• 3:44
  Speaker 2: It is called turnover tax.
• 3:46
  Speaker 3: Almost nobody who qualifies for it has heard of it
• 3:50
  Speaker 3: because it is optional.
• 3:53
  Speaker 4: Ah.
• 3:53
  Speaker 1: You see. And it's obviously new as well. You said
• 3:55
  Speaker 1: it was introduced when?
• 3:56
  Speaker 2: First of April, 2026.
• 3:57
  Speaker 3: Right.
• 3:58
  Speaker 1: So it's pretty new.
• 3:59
  Speaker 3: But now this is when we're all doing our tax returns, right?
• 4:02
  Speaker 3: So I really think that this is something you should
• 4:07
  Speaker 3: be aware of, especially if you or your friend or
• 4:09
  Speaker 3: your husband or your partner has got a small business,
• 4:11
  Speaker 3: because this is a way you could be free in
• 4:13
  Speaker 3: cash because things are getting tighter. Businesses are shrinking because
• 4:17
  Speaker 3: of the economy. But then here's a way where there's
• 4:19
  Speaker 3: a loophole.
• 4:20
  Speaker 1: Well, that's the thing. It sounds like a loophole, but
• 4:22
  Speaker 1: it's not a loophole. I mean, this is official. But
• 4:25
  Speaker 1: I think a lot of people, to your point, that
• 4:27
  Speaker 1: have businesses or small businesses... They have certain things they do.
• 4:31
  Speaker 1: And you know that this is a tax break or
• 4:33
  Speaker 1: that's a tax credit that you receive. But when you
• 4:35
  Speaker 1: speak to your friends who have businesses, they didn't know that.
• 4:37
  Speaker 1: They don't know about this. That's what we want to know.
• 4:39
  Speaker 3: Yeah.
• 4:39
  Speaker 1: Right? That little thing that you're doing that's helping you.
• 4:42
  Speaker 3: And don't be selfish. Don't keep this to yourself. Each
• 4:45
  Speaker 3: one help one. Because I know a lot of people
• 4:47
  Speaker 3: are like, oh, no, this is what I do. And
• 4:48
  Speaker 3: then I charge this and I do this and then
• 4:50
  Speaker 3: I get returns. You're like, oh.
• 4:52
  Speaker 5: You must keep all your slips from every coffee date
• 4:55
  Speaker 5: with a client. And then when you do your tax returns,
• 4:58
  Speaker 5: give those to the person.
• 4:59
  Speaker 1: You know the little tips where you go, I.
• 5:00
  Speaker 5: Need to save a lot more than what I spend
• 5:03
  Speaker 5: on coffee.
• 5:03
  Speaker 3: Do you know what I'm saying? You, Tembe Gile, could
• 5:05
  Speaker 3: be claiming your KFC back, but you don't know.
• 5:07
  Speaker 2: Actually, yes, for business purposes. Exactly. If I go eat
• 5:11
  Speaker 2: at the restaurant with one of you, that's technically a
• 5:13
  Speaker 2: work meeting. Yes.
• 5:17
  Speaker 1: I want to say maybe that's one thing you shouldn't
• 5:19
  Speaker 1: be doing. Maybe there are things people are doing they
• 5:22
  Speaker 1: shouldn't be doing. That's also a conversation.
• 5:24
  Speaker 3: Frankie just saw himself in jail and he was like, no, no,
• 5:28
  Speaker 3: this is not good.
• 5:29
  Speaker 2: So there we go. On the way, we're going to
• 5:31
  Speaker 2: speak to Mr.
• 5:31
  Speaker 3: Stanele Kunene, who's senior manager at small business at SARS.
• 5:35
  Speaker 3: And I found this on Instagram, so it could be wrong.
• 5:38
  Speaker 1: Oh right not everything on the internet is true.
• 5:41
  Speaker 3: It could be wrong but he's going to come through
• 5:43
  Speaker 3: and let us know exactly what.
• 5:44
  Speaker 5: It is I do enjoy you the disclaimer comes at
• 5:46
  Speaker 5: the end once we've all gone to the website trying to.
• 5:49
  Speaker 3: Declare get them excited and then tell them what the
• 5:52
  Speaker 3: rules are afterwards 084 00 00 947 do you have
• 5:57
  Speaker 3: a small business did you know about this has it
• 6:00
  Speaker 3: worked out for you are you currently running your tax
• 6:03
  Speaker 3: returns like that now I mean tax returns have to
• 6:05
  Speaker 3: be in by the end of October right talk to
• 6:07
  Speaker 3: us And what other things is your business doing in
• 6:11
  Speaker 3: terms of returns? Where you're like, oh no, if I
• 6:13
  Speaker 3: do this and then this is how much I get back.
• 6:15
  Speaker 3: You guys didn't know about it, but I do.
• 6:17
  Speaker 1: And I also want to say, because we're going to
• 6:18
  Speaker 1: have him on, Mr. Kunene there. If you've got a
• 6:21
  Speaker 1: question for you, you've got a small business, you have
• 6:22
  Speaker 1: a question.
• 6:23
  Speaker 2: Oh, this is true.
• 6:24
  Speaker 1: He is the senior manager of small business at SARS.
• 6:26
  Speaker 1: This is a nice time to pop him a question.
• 6:29
  Speaker 3: And also, if you have a small business and your
• 6:31
  Speaker 3: tax practitioner hasn't told you about this.
• 6:34
  Speaker 2: That's all I'm saying. What are you paying that guy for? Nadira,
• 6:40
  Speaker 2: you're in Linksfield. Good morning.
• 6:41
  Speaker 3: What's your question for Mr. Sanele Kunene?
• 6:44
  Speaker 6: Good morning, Anela.
• 6:46
  Speaker 2: Good morning, Nadira.
• 6:47
  Speaker 6: So I have a property that I rent out and
• 6:50
  Speaker 6: I want to know whether it qualifies as a mini business.
• 6:54
  Speaker 6: Instead of putting it onto my personal income tax, could
• 6:57
  Speaker 6: I qualify for the R600, 000 zero rate?
• 7:01
  Speaker 2: Oh, how much are you making.
• 7:02
  Speaker 3: On it a year?
• 7:04
  Speaker 6: Oh, definitely under 600,000.
• 7:07
  Speaker 2: Oh, then okay. You know what?
• 7:08
  Speaker 3: Without even him saying it, I think you qualify, but
• 7:10
  Speaker 3: luckily he's on the line and he's going to answer.
• 7:12
  Speaker 2: That for you. Mr.
• 7:13
  Speaker 3: Sannele Kunene, National Senior Manager of SMMEs. Good morning.
• 7:18
  Speaker 2: Welcome, Sannele, in the club. Thank you for your time, sir.
• 7:22
  Speaker 4: Good morning, Sannele, in the club. Good to be online
• 7:25
  Speaker 4: with you.
• 7:26
  Speaker 3: Wonderful. Which office are you joining us from?
• 7:29
  Speaker 2: The one in Jermiston?
• 7:31
  Speaker 1: Yes.
• 7:33
  Speaker 4: I mean, head office in Victoria.
• 7:35
  Speaker 2: Oh, head office. Big people.
• 7:39
  Speaker 4: All right.
• 7:39
  Speaker 2: You're very important. Okay, then, Mr. Kunene.
• 7:42
  Speaker 3: Nadira's question to set off this conversation with you.
• 7:45
  Speaker 2: She rents out a property.
• 7:47
  Speaker 3: She gets less than 600,000 rands a year. Does she
• 7:49
  Speaker 3: qualify for this one?
• 7:52
  Speaker 4: Yeah, first thing to start with, and it's a good question.
• 7:56
  Speaker 4: First thing, we can have a test here.
• 8:01
  Speaker 2: Sorry, Mr.
• 8:02
  Speaker 3: Kunene, are you on speaker?
• 8:06
  Speaker 4: Yes, let me just change the device. Is it better now?
• 8:09
  Speaker 3: Oh, much better.
• 8:10
  Speaker 2: It was sounding quite muffled. Okay, we're all ears.
• 8:14
  Speaker 4: Much better. Yeah, definitely on property. So there are some
• 8:18
  Speaker 4: qualified criteria. Let me just explain that it's a good product,
• 8:23
  Speaker 4: and it's actually meant for the status of people who
• 8:28
  Speaker 4: are within the range. We understand that there are people
• 8:31
  Speaker 4: who really have got to run something just to put
• 8:34
  Speaker 4: the bread on the table and so on. So definitely
• 8:38
  Speaker 4: Tenover Tech was meant for micro-business startups in particular, so
• 8:44
  Speaker 4: that as they thrive, they just pay a reasonable tax rate,
• 8:49
  Speaker 4: which is 0.23%. So essentially, and by the way, it's
• 8:53
  Speaker 4: a product that has been there for some time. I
• 8:55
  Speaker 4: think we have Tenover Tech since 2009. Its inception was
• 9:00
  Speaker 4: around 2009. And of course, it's been to one of
• 9:04
  Speaker 4: our products. I must agree that the way of promoting
• 9:08
  Speaker 4: it has not been up to scratch, which is what
• 9:11
  Speaker 4: we are improving to try to make qualifying taxpayers to
• 9:15
  Speaker 4: know about it, essentially. Yeah, but of course, the question
• 9:20
  Speaker 4: around the property, if it's within the threshold, of course,
• 9:24
  Speaker 4: the person may just need to apply. And I must
• 9:27
  Speaker 4: say this. You apply as long as you are within
• 9:31
  Speaker 4: the threshold of 2.3, as with the fact from the
• 9:34
  Speaker 4: 1st of April, 2026. So the minister announced. Before that,
• 9:40
  Speaker 4: the qualifying criteria has since been 1 million, the threshold.
• 9:46
  Speaker 4: But now it's been increased 2.3, so that's quite a
• 9:49
  Speaker 4: number of deserving. Because if you calculate since 2009, the
• 9:53
  Speaker 4: inflation rate and so on, the one million is no
• 9:56
  Speaker 4: longer one million okay Mr.
• 9:59
  Speaker 3: Kunene I don't want to lie I'm very lost so
• 10:02
  Speaker 3: I'm going to ask you like I'm a stupid person
• 10:03
  Speaker 3: here so If my business makes R600, 000 profit a year,
• 10:10
  Speaker 3: I qualify. So after everything, after cost of sales, after
• 10:15
  Speaker 3: gross income or net income, all of that, if I
• 10:18
  Speaker 3: make R600, 000 profit and less, I qualify for this where
• 10:22
  Speaker 3: I don't pay tax on that R600, 000.
• 10:25
  Speaker 4: Very good question. There are two things you're mentioning there,
• 10:27
  Speaker 4: which I must clarify. The first part is the turnover tax,
• 10:32
  Speaker 4: you are only taxed based on the turnover. So, in
• 10:35
  Speaker 4: other words, you declare this is how much I've made.
• 10:38
  Speaker 4: And let me just say what was one of the
• 10:40
  Speaker 4: reasons why it was introduced. It was introduced to address
• 10:45
  Speaker 4: the issue that many businesses, especially small businesses, I won't
• 10:49
  Speaker 4: mention some sectors who are mostly affected, they struggle with
• 10:53
  Speaker 4: record-keeping issues.
• 10:54
  Speaker 1: Yes, with record keeping.
• 10:56
  Speaker 2: Okay.
• 10:57
  Speaker 4: So instead of me coming here and saying, before we
• 11:00
  Speaker 4: text you one, this financial, one, this, one, that, one,
• 11:03
  Speaker 4: two expenses, we just say, tell us how much you've made. Right?
• 11:07
  Speaker 4: Then we text you based on turnover. It's not really
• 11:10
  Speaker 4: on profit. When we text you on profit is when
• 11:13
  Speaker 4: we then go to the normal corporate income tax rate,
• 11:17
  Speaker 4: which is the 27%. And then that's where you declare
• 11:21
  Speaker 4: all your expenses And, of course, you end up with
• 11:24
  Speaker 4: the profit that we text you on. But for 10
• 11:27
  Speaker 4: of our texts, we text you straight on how much
• 11:28
  Speaker 4: you made. You tell me how much you made, and
• 11:30
  Speaker 4: then that's where we text you on.
• 11:32
  Speaker 1: And I think that's an important, Mr. Kanene, that's a
• 11:34
  Speaker 1: very important note. Because there are a lot of people
• 11:37
  Speaker 1: who are not up to scratch with the accounting systems
• 11:40
  Speaker 1: and all the things that you need to run a business.
• 11:42
  Speaker 1: But what I can show you is I can show
• 11:44
  Speaker 1: you my bank account. And I can say, look, this
• 11:46
  Speaker 1: is how much money came into my business. And I
• 11:50
  Speaker 1: can show you sort of what my margins are or whatever,
• 11:52
  Speaker 1: but I don't have every little slip or every little
• 11:54
  Speaker 1: coffee that I've gone for. So I just go, look, Mr. Saaz,
• 11:58
  Speaker 1: this is my business and this is my business account.
• 12:01
  Speaker 1: And there's the total. You can look. I mean, you
• 12:04
  Speaker 1: guys can obviously look at the business and then see
• 12:06
  Speaker 1: in the bank account. This is how much money has
• 12:08
  Speaker 1: come in.
• 12:09
  Speaker 2: Okay.
• 12:09
  Speaker 1: So then you qualify, right?
• 12:12
  Speaker 3: So 600,000 before any of the expenses are taken off.
• 12:14
  Speaker 1: Yeah. All the money that's come into the business turnover.
• 12:17
  Speaker 1: But it's up to 2.3 million, hey?
• 12:21
  Speaker 4: Yes, Frankie. Up to 2.3 million. Anything above that, of course,
• 12:25
  Speaker 4: you may not qualify.
• 12:27
  Speaker 3: So how do then I apply for this? Do I
• 12:30
  Speaker 3: go to SARS? Will I find it on the website?
• 12:32
  Speaker 4: All right. Perfect question. So all along we've been having
• 12:37
  Speaker 4: the turnover tax, but we are enhancing the panels. So
• 12:42
  Speaker 4: first thing is if you go to SARS website, you
• 12:45
  Speaker 4: will definitely be able to get to register. So in
• 12:50
  Speaker 4: other words, you go to the SARS website, you go
• 12:53
  Speaker 4: to the small business tab, you find that turnover tax
• 12:58
  Speaker 4: as the product that you will then apply for. And then,
• 13:02
  Speaker 4: of course, you can go to YouTube SARS channel, SARS TV.
• 13:08
  Speaker 4: We normally promote this even on our webinars and you
• 13:11
  Speaker 4: go through our webinars. And we also got other videos
• 13:14
  Speaker 4: that if you go in there, it just talks about
• 13:17
  Speaker 4: TenovaTex in our channel. Social media, we are on FOMA, Twitter,
• 13:23
  Speaker 4: which is now X, Facebook. You just type TenovaTex, you
• 13:28
  Speaker 4: get a page, it will give you all the information
• 13:29
  Speaker 4: that you need.
• 13:30
  Speaker 3: Okay, and just quickly, because I'm being pushed now to move,
• 13:34
  Speaker 3: one more thing that I saw in this account from
• 13:36
  Speaker 3: Ed Slimyan on Instagram. He says, if you employ anyone
• 13:40
  Speaker 3: between 18 and 29 years old, earning between 2,500 rand
• 13:43
  Speaker 3: and 7,500 rand a month, SARS will pay you up
• 13:44
  Speaker 3: to 1,500 of that salary bill every month.
• 13:46
  Speaker 2: It's called employment tax incentive. Is this true?
• 13:56
  Speaker 4: Yes, so what the National Treasury has done, there are
• 14:00
  Speaker 4: quite a few incentives. Basically, there are three incentives. One
• 14:03
  Speaker 4: of them is ETI, of course, the one you're talking about,
• 14:06
  Speaker 4: where we are saying if you, because one thing that
• 14:08
  Speaker 4: we're struggling as a country is unemployment of young people.
• 14:13
  Speaker 4: So what the government is saying then is saying if
• 14:16
  Speaker 4: you employ any person between that age, you will then
• 14:20
  Speaker 4: get back a particular amount if you employ a young
• 14:24
  Speaker 4: person between that age.
• 14:24
  Speaker 1: That's amazing.
• 14:25
  Speaker 4: And that is within the pay-as-you-earn tax type for companies.
• 14:29
  Speaker 4: So it's one of the benefits that mainly will benefit
• 14:32
  Speaker 4: SMEs in particular, where they get some tax pay if
• 14:37
  Speaker 4: you employ young people.
• 14:38
  Speaker 5: I was actually going to say, I've just gone onto
• 14:41
  Speaker 5: the SARS website, and when you go onto the turnover
• 14:43
  Speaker 5: tax page, there is a YouTube explainer that you can
• 14:46
  Speaker 5: watch in terms of what it is, how to go
• 14:48
  Speaker 5: about it. There are also questions that help you to
• 14:50
  Speaker 5: actually quickly figure out whether you qualify or not.
• 14:53
  Speaker 3: Alright this has been quite informative thank you so much Mr.
• 14:56
  Speaker 3: Sanele Kunene quickly before I let you go you said.
• 14:59
  Speaker 2: That you guys you know you try as.
• 15:01
  Speaker 3: Much as possible to let everybody know about this can
• 15:04
  Speaker 3: I give you our sales number because our advertising guys
• 15:07
  Speaker 3: they're amazing and we could do some adverts for you
• 15:09
  Speaker 3: and put them on all of our radio stations and
• 15:12
  Speaker 3: I will guarantee a discount for you with our.
• 15:14
  Speaker 1: AEs no no no hold on Mr. Kunene I'll step
• 15:17
  Speaker 1: in on your behalf here remember SARS receives money they
• 15:20
  Speaker 1: don't give the money out They receive the money, please.
• 15:25
  Speaker 4: We provide free service as well, Frankie. But definitely, we're
• 15:30
  Speaker 4: asking the public to go to our website, look out
• 15:33
  Speaker 4: what you need to do to qualify for turnover tax.
• 15:36
  Speaker 4: And of course, take advantage of a restaurant company for
• 15:39
  Speaker 4: turnover tax and get a reduced turnover tax rate. And
• 15:43
  Speaker 4: see where we're going forward on that.
• 15:45
  Speaker 3: Thank you, Mr. Sanele Kunene, but I will personally take
• 15:47
  Speaker 3: care of your account if you guys do decide to
• 15:53
  Speaker 3: up your expenditure on 947.
• 15:54
  Speaker 2: I will be the AE for it.
• 15:56
  Speaker 3: Thank you so much.
• 15:56
  Speaker 4: I'll look after you guys.
• 15:57
  Speaker 1: Thank you so much.
• 15:59
  Speaker 2: I just want them to write off my bill.
• 16:01
  Speaker 7: I'm cheaper.
• 16:02
  Speaker 4: Mr.
• 16:03
  Speaker 3: Sanele Kunene is the National Senior Manager of SMME, Small,
• 16:07
  Speaker 3: Medium and Micro Enterprise at SARS.
• 16:09
  Speaker 5: So many small businesses are not registered because people are
• 16:13
  Speaker 5: trying to make a living and every chance the government gets,
• 16:16
  Speaker 5: they take from people.
• 16:17
  Speaker 3: So now they want you to register two years down
• 16:20
  Speaker 3: the line.
• 16:21
  Speaker 2: Oh, they're going to text you.
• 16:22
  Speaker 3: Can we get a relief on personal tax, income tax?
• 16:25
  Speaker 4: Because, wow.
• 16:26
  Speaker 5: I thought we collectively agreed, you know, as long as
• 16:29
  Speaker 5: they leave us alone, we leave them alone.
• 16:33
  Speaker 3: No, I don't think that's the agreement.
• 16:37
  Speaker 2: They're like Velcro. You're stuck with them. Rudy, you're in Roodepoort.
• 16:41
  Speaker 2: Good morning.
• 16:43
  Speaker 7: Morning, Honeylander Club.
• 16:44
  Speaker 1: How are you?
• 16:44
  Speaker 2: We're great, Rudy.
• 16:46
  Speaker 3: You've got like a personal testimonial on this.
• 16:51
  Speaker 1: Yes, yes.
• 16:53
  Speaker 7: I must agree with the tax candidate that was on
• 16:57
  Speaker 7: the line. Unfortunately, it's a tax system that is.
• 17:02
  Speaker 7: And not well advertised, but it works absolutely fantastically well,
• 17:08
  Speaker 7: especially for new startups and self-proprietary businesses. So my wife
• 17:13
  Speaker 7: runs a daycare center and we registered for turnover tax
• 17:18
  Speaker 7: about four years ago. And it's really so simple. The
• 17:23
  Speaker 7: word of it is exactly what it means. It's turnover tax.
• 17:27
  Speaker 7: In other words, you declare your total income, no expenses deducted,
• 17:32
  Speaker 7: no salaries, no cost of sale, nothing. You just send
• 17:37
  Speaker 7: in your statements of your income. If it's less than
• 17:40
  Speaker 7: the threshold... You pay zero percent tax. And then if
• 17:44
  Speaker 7: it's more than the threshold as it staggers up, you
• 17:47
  Speaker 7: go through different percentages. But what makes it phenomenal is
• 17:52
  Speaker 7: the fact that my wife, for an example, admin is
• 17:56
  Speaker 7: not a strong point. You need to keep all your receipts,
• 18:03
  Speaker 7: everything that you buy in order to declare your expenses
• 18:07
  Speaker 7: and all that sort of stuff. With turnover tax, you
• 18:09
  Speaker 7: don't have to do that at all. They take your
• 18:11
  Speaker 7: declaration of your total revenue. They work out your bracket.
• 18:15
  Speaker 7: They tax you accordingly, and that is it. It works
• 18:18
  Speaker 7: like a dream.
• 18:19
  Speaker 1: Yeah, and I think that's the point, right? So your
• 18:23
  Speaker 1: wife has no obligation because everyone wants to be in
• 18:25
  Speaker 1: good standing with SARS. And I think that's the point, right?
• 18:28
  Speaker 1: You run a business and you know that SARS is
• 18:31
  Speaker 1: part of what this means running a business. But it's
• 18:33
  Speaker 1: sometimes very tricky to make sure because the rules are complicated.
• 18:36
  Speaker 1: So this is the easiest way. Your wife basically shows
• 18:39
  Speaker 1: her income. She says, here's my income. This is what
• 18:41
  Speaker 1: it is, and SARS goes cool. That's your threshold. This
• 18:44
  Speaker 1: is how it works.
• 18:45
  Speaker 7: Yeah, and not only that, we don't have to invest
• 18:50
  Speaker 7: in expensive accountants or whatever monthly, quarterly, annually to do
• 18:54
  Speaker 7: your books and to make sure you are in good
• 18:56
  Speaker 7: state with SARS. I'm literally going through it now. I'm
• 19:01
  Speaker 7: going to attach bank statements from the 1st of March
• 19:04
  Speaker 7: 2025 till the end of Feb 2026. 12 statements on
• 19:09
  Speaker 7: the sales website and that's it.
• 19:11
  Speaker 1: The tax submission is done. That's done. Because you're under
• 19:14
  Speaker 1: the threshold. And to your point, the business, the kind
• 19:17
  Speaker 1: of business that you run is a daycare center. So
• 19:20
  Speaker 1: it's not like you have 100 million clients. You've got
• 19:22
  Speaker 1: 12 little kids, right, that your wife looks after.
• 19:26
  Speaker 3: The parents are paying 3,000 rand a month per child. Exactly.
• 19:29
  Speaker 1: And then you just submit that.
• 19:30
  Speaker 3: Boom.
• 19:30
  Speaker 2: To that point as well, I mean, you look.
• 19:36
  Speaker 7: Today at how many SMME startups fail.
• 19:40
  Speaker 6: Yeah.
• 19:40
  Speaker 7: And that's 90% as a result of them not reaching
• 19:43
  Speaker 7: the numbers, not being profitable. Now you've still got to
• 19:48
  Speaker 7: go do a tax and it kills your business. I
• 19:52
  Speaker 7: think this is really a good initiative from SARS to
• 19:55
  Speaker 7: help startups and small businesses to keep their head above
• 19:59
  Speaker 7: the water.
• 20:00
  Speaker 1: And to be compliant.
• 20:01
  Speaker 2: I absolutely love it.
• 20:02
  Speaker 3: And then Rudy, quickly, do you know about the employment
• 20:04
  Speaker 3: tax incentive where if you employ anyone between the ages
• 20:07
  Speaker 3: of 18 and 29 years old and you're paying them
• 20:09
  Speaker 3: between two and a half and seven and a half
• 20:11
  Speaker 3: thousand rands a month, SARS will pay you up to
• 20:14
  Speaker 3: 1,500 rand of that salary bill back every month.
• 20:19
  Speaker 1: No, I learned about it now.
• 20:21
  Speaker 7: Obviously, the staff working for my wife is going to
• 20:24
  Speaker 7: go onto that system immediately.
• 20:26
  Speaker 4: Immediately, dude.
• 20:27
  Speaker 7: Immediately.
• 20:28
  Speaker 1: Because you can claim it back in the year.
• 20:31
  Speaker 7: But that's all new. That was announced now in April.
• 20:35
  Speaker 1: That never used to be.
• 20:36
  Speaker 7: Because she's got two people working at the school helping her.
• 20:40
  Speaker 1: And they both earn.
• 20:42
  Speaker 7: was in actual fact maybe a little bit, I don't know,
• 20:45
  Speaker 7: but both in that bracket. So I'm definitely, definitely going
• 20:50
  Speaker 7: to the sales website and I'm going to register that.
• 20:53
  Speaker 3: Thank you so much, Rudy. Every little bit helps, guys.
• 20:55
  Speaker 3: Every thousand rand that you can save. Trust me, it's
• 20:58
  Speaker 3: going to go a long way. A big thank you
• 21:00
  Speaker 3: to at slimyan underscore on Instagram because he's the one.
• 21:05
  Speaker 1: He's the one who told you about this.
• 21:06
  Speaker 3: Yeah, he's the one.
• 21:07
  Speaker 2: The stuff pops up on my Instagram. I'm like, what?
• 21:10
  Speaker 3: Thank you, at slimyan underscore. Let's go follow him. Clearly,
• 21:13
  Speaker 3: there's other things that he's telling us about.