Income Tax Act, 1962 (Act No. 58 of 1962)SchedulesSixth Schedule : Determination of Turnover Tax payable by Micro BusinessesPart V : Administration11. Interim Payments |
| (1) | A registered micro business must, within six calendar months from the first day of the year of assessment— |
| (a) | estimate the taxable turnover for the year of assessment; |
| (b) | calculate the amount of tax payable on the estimated taxable turnover; and |
| (c) | pay an amount equal to 50 per cent of the amount of tax so calculated. |
| (2) | The estimate described in paragraph (1)(a) may not be less than the taxable turnover of the previous year of assessment unless the Commissioner, on application by the taxpayer and having regard to the circumstances, approves a lower estimate. |
[Paragraph 11(2) of the Sixth Schedule substituted by section 91 of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]
| (3) | Where full payment of the amount described in subparagraph (1)(c) is not received by the Commissioner within six calendar months from the first day of the year of assessment, interest at the prescribed rate is payable from the first day after the six calendar months to the earlier of the date on which the shortfall is received and the last day of the year of assessment. |
[Note: Paragraph 11(3) of the Sixth Schedule deleted by section 271, read with paragraph 99(a) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011) - with effect from a date to be proclaimed]
| (4) | A registered micro business must, by the last day of the year of assessment— |
| (a) | estimate the taxable turnover for the year of assessment; |
| (b) | calculate the amount of tax payable on the estimated taxable turnover; and |
| (c) | pay an amount equal to the amount of tax so calculated less the amount paid in terms of subparagraph (1). |
| (4A) | For the purposes of paragraph 2(1) of the Fourth Schedule, section 89bis(2), section 6 the Skills Development Levies Act, 1999 (Act No. 9 of 1999), and section 8 of the Unemployment Insurance Contributions Act, 2002 (Act No. 4 of 2002), a registered micro business may elect to pay the amounts deducted or withheld in terms of that paragraph or those sections to the Commissioner— |
| (i) | with regard to amounts deducted or withheld during the first six calendar months from the first day of the year of assessment, within seven days after the end of such period; and |
| (ii) | with regard to amounts deducted or withheld within the next six calendar months following the period in item (i), within seven days after the end of such period. |
[Section 11(4A) of the Sixth Schedule substituted by section 15(1)(a) of the Tax Administration Laws Amendment Act, 2013 (Act No. 39 of 2013) - effective 1 March 2014]
| (4B) | If a registered micro business has made an election in terms of subparagraph (4A), the election must apply to all amounts deducted or withheld in terms of the applicable provisions referred to in that subparagraph. |
[Section 11(4B) of the Sixth Schedule inserted by section 15(1)(b) of the Tax Administration Laws Amendment Act, 2013 (Act No. 39 of 2013) - effective 1 March 2014]
| (5) | Where full payment of the amount described in subparagraph (4)(c) is not received by the Commissioner by the last day of the year of assessment, interest at the prescribed rate is payable from the day following the last day of the year of assessment to the earlier of the date on which the shortfall is received and the due date of the assessment for that year of assessment. |
| (6) | Where the estimate described in subparagraph 4(a) is less than 80 per cent of the taxable turnover for the year of assessment, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to 20 per cent of the difference between the tax payable on 80 per cent of the taxable turnover for the year of assessment and the tax payable on that estimate must be charged. |
[Section 11(6) of the Sixth Schedule substituted by section 26(1)(b) of the Tax Administration Laws Amendment Act, 2012 (Act No. 21 of 2012)]
| (7) | Where the Commissioner is satisfied that the estimate described in subparagraph (4)(a) was not deliberately or negligently understated and was seriously made based on the information available, or is partly so satisfied, the Commissioner must waive the penalty charged in terms of subparagraph (6) in full or in part. |
[Section 11(7) of the Sixth Schedule substituted by section 26(1)(c) of the Tax Administration Laws Amendment Act, 2012 (Act No. 21 of 2012)]
| (8) | Where the Commissioner has issued an assessment in respect of the payment required in terms of subparagraph (4), a penalty must not be imposed in terms of subparagraph (6). |
[Paragraph 11(8) of the Sixth Schedule substituted by section 271 , read with paragraph 99(c) of Schedule 1, of the Tax Administration Act, Act No. 28 of 2011)]