The South African Revenue Service (SARS) has released revised guidance on the tax exemption for small business funding entities. This guide outlines the approval process for these entities and details the partial taxation of their receipts and accruals under the Income Tax Act (ITA).
The guide provides general information on the approval of small business funding entities under section 30C of the Income Tax Act 58 of 1962 (the Act) and partial taxation of its receipts and accruals under section 10(1)(cQ) of the Act.
It deals with the following taxes and duties that may affect entities approved by the Commissioner as small business funding entities:
- Capital gains tax
- Dividends tax
- Donations tax
- Employees’ tax
- Estate duty
- Income tax
- Securities transfer tax
- Skills development levy
- Transfer duty
- Unemployment insurance fund contributions
- Value-added tax.
