Don't assume your SMME automatically qualifies for the tax incentives enjoyed by small business corporations!

Read on to find out why you should ensure your SMME also qualifies as a small business corporation so that you can DOUBLE your tax benefits.

SBCs have more tax benefits than SMMEs

Small, medium and micro enterprises (SMMEs) aren’t the same as small business corporations (SBCs). The obvious differences include:

The most important difference is the different tax benefits they enjoy

SBCs benefit from special tax rates and accelerated allowances in the Income Tax Act, whilst SMMEs benefit from having certain amounts/grants exempted from tax.

You'll only be an SBC if you meet the following requirements Your company has to meet all the following requirements before it can qualify as an SBC (Section 12E of the Income Tax Act):

1. Ownership requirements

It must be a close corporation, any private company registered under the Companies Act, a co-operative or a society AND:

These are only 3 limitations when qualifying for small business tax benefits but there are another 6 that you need to know.

  Get your Practical Tax Handbook Today
An amendment was introduced, allowing for circumstances where a new business is setup using shelf close corporations or companies (close corporation or company was already registered by someone else that then sells that corporation or company to you).

2. Turnover requirements

Remember: When you start trading during a tax year, you must calculate the annual equivalent to determine whether your turnover would have exceeded R20 million had you traded for the full tax year.

3. Business activity requirements

• The company can’t be a personal service provider (Fourth Schedule).

Definition: Personal service provider

Any company or trust, where any service rendered on behalf of the company or trust to a client is rendered personally by a connected person (this includes a member or shareholder of the company or CC or any relative of the shareholder or member), and

• such person would be regarded as an employee of the client if the service was rendered directly to the client; or

• where those duties must be performed mainly at the premises of the client, the person, company or


Caution: A company or trust can’t be a personal service provider where the company or trust throughout the year of assessment employs three or more full-time employees who are not shareholders, members or connected persons.

As a small business you cannot afford to miss out on these tax benefits. In the Practical Tax Handbook goes into full detail about how and why small business corporations can have greater tax benefits.

Take advantage of these tax saving opportunities by ordering the Practical Tax Handbook  now!

  Get your Practical Tax Loose Leaf Today

Sign up to the complete Practical Tax handbook Subscription Service!

The Practical Tax Handbook comes with an essential updating service, the special report: Take on SARS and Win!, access to the 24/7 expert Tax advice helpdesk and three bonus tax saving reports.

You'll also immediately receive FIVE FREE BONUS GIFTS to  help you take the hassle out of tax, audit-proof your business and make the Receiver your friend!


Combined, these gifts have a total value of R1 200 - Yours absolutely free

To welcome you as a new subscriber, you’ll get instant tax savings, with these FREE five gifts and services:

  1. You’ll find out how to save thousands of rands and precious time with the alternative dispute resolution method.
  2. You have access to a personalised Tax Helpdesk service where a team of tax experts are available 24/7 to answer your specific questions.
  3. 5 Tax deductions to save you over R110 000 in your company today!
  4. How to save R80 660 in Company Car Taxes
  5. 30 Quick Tax Solutions for Busy Taxpayers

Total Value R2 997

But you only pay R997 
(And it's backed with my 100% satisfaction guarantee)

The Practical Tax Handbook is developed by tax experts, who individually charge their clients over R1 000 an hour, but here you pay just R997 for their 24/7 advice.

The full subscription is valued at only R2 997…. which is a pittance, compared to the tax savings you’ll make within a few months.

Today, you can secure the full subscription for as little as R997 excl VAT - a massive R2 000 saving.

Your entire package includes:

The 500 page Practical Tax handbook
valued at R1 797
Take on SARS and Win
valued at R159
Free expert advice to solve your tax problems
valued at R599
Tax deductions that will save you over R110 000
valued at R149
How to save R80 660 in company car taxes
valued at R149
30 Quick tax solutions for busy taxpayers
valued at R149

LOWEST PRICE GUARANTEE: When you subscribe to The Practical Tax Handbook Subscription Service, you will be invoiced for the option you select.

Kind regards,

Natalie Cousens

Managing Editor, The Practical Tax Loose Leaf

PS. Here's my personal guarantee to you. If at any time during the next 30 days, for any reason whatsoever, you decide the Practical Tax Handbook service isn’t for you, simply call or email us and return the Practical Tax Handbook in its original condition.
You will be refunded every cent of the subscription price.
It doesn’t get any simpler than that.
No pressure – no gimmicks – no strings attached.

Secure Order Form

Yes, I want to try the Practical Tax Handbook Service absolutely risk-free and start saving on tax.

Please complete the following:
Fields marked with * are required!

*First Name:
*Last Name:
*Daytime number:
ID number:
*E-mail address:

Along with The Practical Tax Loose Leaf Subscription Service you will also receive a lifetime subscription to your Tax Bulletin. If you would prefer not to receive the Tax Bulletin, please tick the following box.

© 2018 All rights reserved.

Contact Us | Privacy Policy | FAQ | Our Products | About Us | Our Experts | Disclaimer

Copyright © 2018, Fleet Street Publications (Pty) Ltd.
The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. No action or inaction should be taken based solely on the contents of this publication. We do research all our recommendations and articles thoroughly, but we disclaim all liability for any inaccuracies or omissions found in this publication. No part of this publication may be reproduced or transmitted in any form or by means of electronic or mechanical, including recording , photocopying, or via a computerised or electric storage or retrieval system without permission granted in writing from the publishers.