An international comparative analysis of how South Africa can improve its turnover tax regime

Abstract

This research report undertakes a comparative analysis aimed at outlining avenues for enhancing the turnover tax regime in South Africa. This analysis will outline existing shortcomings and furnish recommendations to the National Treasury for potential legislative amendments. By juxtaposing and analysing turnover tax systems operative in Australia, New Zealand, Singapore, and India, valuable insights can be collected to inform potential improvements to South African tax legislation, thereby fostering the advancement of microenterprises within the South African economy. Furthermore, this report aims to examine selected paragraphs of the Sixth Schedule of the Income Tax Act No. 58 of 1962, which governs the administration of microenterprises. It posits that a reassessment of these paragraphs holds the potential to accrue substantial benefits for microenterprises and fortify the overarching tax framework. Ultimately, by furnishing tax legislative recommendations geared towards improving the turnover tax system, this research report seeks to contribute significantly to the sustainability of both the small, medium, and microenterprises (SMME) sector and the broader South African economy.