(From Financial Mail)
Byline: Itumeleng Mahabane
SMALL BUSINESS/BLACK ECONOMIC EMPOWERMENT Something of a revolution, coming from this minister Tax relief, easier processes and advice for small businesses In a budget titled "growth, development and equity", government gave further evidence that more than ever, it is pinning its hopes on the small business sector for job-creating growth. Various studies conducted by both the private sector and government show that small businesses, especially informal businesses, have been key in absorbing labour.
In addition to the labour regulation restructuring suggested by President Thabo Mbeki in his state of the nation address, finance minister Trevor Manuel was expected to announce tax benefits for small business - and he delivered. The tax relief package aimed at small business amounts to R2bn, the equivalent of the impact of the corporate tax reduction from 30% to 29%.
In a nutshell, the immediate benefits for small business are: The turnover limit for companies to become liable for tax rises from R5m to R6m; and The graduating tax rates for those companies have been adjusted. Up to R35000 of taxable income the rate is zero and from R35001 …