SARS Turnover Tax Registration & Guide
Simplified, low-rate tax for South African micro-businesses with annual turnover of R2.3 million or less.
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SARS Turnover Tax Portal & TT01 Forms
Access official SARS Turnover Tax information, download TT01 registration forms, and manage your micro-business tax profile online via SARS eFiling or SOQS.
How Turnover Tax Works & eFiling Navigation
Turnover Tax is designed by SARS under the Sixth Schedule to reduce administrative friction for micro-businesses with annual gross revenue of R2.3 million or less (increased from R1 million effective 1 April 2026).
- eFiling Path: Log into eFiling → Organisations → Tax Types → Manage Tax Types (or upload Form TT01 via SOQS Supporting Documents).
- SARS Turnaround Time: 7 to 21 business days from TT01 submission.
- Higher Tax-Free Threshold: The first R600,000 of gross turnover is 100% tax-free.
- Filing Deadlines: Interim TT02 returns due 31 August & 28 February; annual TT03 due during Tax Season.
SARS Turnover Tax Rates (Effective 1 April 2026)
| Turnover Bracket | Tax Payable |
|---|---|
| R0 – R600,000 | 0% (Tax Free) |
| R600,001 – R950,000 | 1% of amount above R600,000 |
| R950,001 – R1,400,000 | R3,500 + 2% of amount above R950,000 |
| R1,400,001 – R2,300,000 | R12,500 + 3% of amount above R1,400,000 |
DIY Turnover Tax Registration Steps
TT01 ApplicationCheck Sixth Schedule Eligibility Criteria
Verify that your qualifying annual gross turnover will not exceed R2.3 million (effective 1 April 2026) and that no more than 20% of your receipts come from "professional services" (accounting, legal, medical, engineering, or IT consulting by a company/CC) or investment income.
Download & Complete SARS Form TT01
Download the official TT01 (Application for Registration as a Micro Business for Turnover Tax) from sars.gov.za and complete all shareholder/member declarations.
Submit via SOQS or SARS eFiling Before the Deadline
Existing businesses must submit Form TT01 before the start of the year of assessment (on or before 28/29 February). Newly started micro-businesses must apply within 2 months from the date business activities commenced.
Verify Turnover Tax Activation on SARS eFiling
SARS processes TT01 registrations within 7 to 21 business days and issues a formal Turnover Tax registration notice activating TT02 and TT03 return types on eFiling.
Submit Bi-Annual TT02 Estimates & Annual TT03 Return
Submit and pay interim Turnover Tax payments twice a year (Form TT02 by 31 August and 28 February) and lodge your final annual Turnover Tax return (Form TT03) during Corporate/Individual Filing Season.
Common TT01 Rejection & Disqualification Rules
Professional Services Disqualification (Para 3 of Sixth Schedule)
Companies and Close Corporations deriving more than 20% of receipts from professional services (IT, consulting, medical, legal, engineering, accounting) are disqualified from Turnover Tax and should use Section 12E SBC instead.
Missing the 28 February Prior-Year Cut-Off
If an existing trading business submits Form TT01 on or after 1 March, SARS rejects the election for the current tax year and defers registration to the next assessment year.
Cross-Shareholding in Multiple Companies
If any shareholder holds shares or member’s interest in another unlisted company or CC (other than dormant/exempt entities), SARS disqualifies the micro-business from the Sixth Schedule.
Financial Year-End Not Ending on 28/29 February
A company cannot register for Turnover Tax if its registered CIPC financial year-end is any month other than February.
Frequently Asked Questions
What is SARS Turnover Tax?
Turnover Tax is a simplified, elective tax system under the Sixth Schedule to the Income Tax Act for South African micro-businesses with qualifying annual turnover of R2.3 million or less (effective 1 April 2026). It replaces Income Tax, Provisional Tax, Capital Gains Tax, and (unless elected otherwise) VAT with a single low tax on gross turnover.
What are the SARS Turnover Tax rates for 2026/2027?
Effective 1 April 2026: R0 – R600,000 is 0% (Tax Free); R600,001 – R950,000 is 1% of turnover above R600,000; R950,001 – R1,400,000 is R3,500 + 2% of turnover above R950,000; R1,400,001 – R2,300,000 is R12,500 + 3% of turnover above R1,400,000.
How long does SARS take to approve a TT01 Turnover Tax registration?
Once Form TT01 and supporting CIPC / ID documents are uploaded via SOQS or eFiling, SARS typically takes 7 to 21 business days to verify Sixth Schedule eligibility and activate your Turnover Tax profile.
Is Turnover Tax or Section 12E Small Business Corporation (SBC) better for my business?
Turnover Tax taxes gross revenue regardless of expenses, making it ideal for high-margin micro-businesses with low overhead costs. If your business has high deductible expenses or low net profit margins (under 15%), a standard Pty Ltd taxed under Section 12E SBC often results in lower tax.
When is the deadline to register for Turnover Tax?
Existing businesses must apply before the start of the new tax year (on or before 28/29 February). Newly established micro-businesses must submit Form TT01 within 2 months of commencing business operations.
Related SARS Guides, Calculators & Packages
Need Help Registering or Calculating Turnover Tax?
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