Title page for ETD etd-07262011-134750


Document Type Master's Dissertation
Author Van der Merwe, Anika
URN etd-07262011-134750
Document Title A comparative study of tax relief measures for small and medium enterprises in South Africa and New Zealand
Degree MCom
Department Taxation
Supervisor
Advisor Name Title
Mr M Cronje Co-Supervisor
Mr TL Steyn Supervisor
Keywords
  • Suid-Afrika
  • belastingverligting
  • tax relief
  • South Africa
Date 2011-04-07
Availability restricted
Abstract
The Government of South Africa recognised the vital role that small businesses play in stimulating economic activity, creating jobs, alleviating poverty and improving the living standards of all South Africans. Therefore, the South African Revenue Service (SARS) and the National Treasury introduced a number of initiatives to empower small businesses by simplifying tax and creating certain tax relief measures specifically relating to small businesses. The first of these was introduced by the previous Minister of Finance, Trevor Manual, in his 2000 budget speech and related to small business corporations.

In this study, the tax relief measures available to small businesses in South Africa were evaluated followed by the evaluation of the tax relief measures available to small business in New Zealand. Thereafter, the tax relief measures were compared and analysed in order to determine whether the tax relief measures in South Africa are on par with the tax relief measures available in New Zealand.

By analysing the comparative study of the tax relief measures available to small business in South Africa and the tax relief measures available to small business in New Zealand, it was found that the South African Government has come a long way to assist and empower small business in South Africa. Furthermore, it was found that the tax relief measures available to small business in South Africa are on par and in most instances exceed the tax relief measures available to small business in New Zealand.

The following recommendations were made based on the tax relief measures available in New Zealand:

  • small businesses, which have not elected the turnover tax system, should be allowed to account for VAT on the payment basis and
  • the R1,5 million threshold for Category F vendors should be increased to allow small businesses to only file VAT returns every four months as opposed to every two months.

As small business will continue to play an important role in creating jobs and wealth in the economy, the South African Government should consider implementing the above-mentioned tax relief measures as this could provide further aid to small businesses, furthermore, the government should assess the tax relief measures on a continuous basis to ensure that these measures stay on par with other countries similar to South Africa.

AFRIKAANS : Die Suid-Afrikaanse regering erken die belangrike rol wat klein ondermings in die stimulering van die ekonomie, skepping van werksgeleenthede, verligting van armoede en verbetering van lewenstandaarde van alle Suid-Afrikaners speel. Daarom het die Suid-Afrikaanse Inkomste Diens (SAID) en die Nasional Tesourie ’n aantal maatreėls, wat belastingverligting aan klein ondernemings verleen, geļmplementeer. Die eerste van hierdie maatreėls is deur die vorige Minister van Finansies, Trevor Manual, in sy 2000-begrotingsrede bekend gemaak en was gemik op klein sake-ondernemings.

In hierdie studie word die belastingverligtingsmaatreėls vir klein ondernemings in Suid-Afrika geėvalueer gevolg deur die evaluering van die belastingverligtingsmaatreėls vir klein ondernemings in Nieu-Seeland. Daarna word die belastingverligtingsmaatreėls vergelyk en gronding ontleed om te bepaal of die belastingverligtingsmaatreėls in Suid-Afrika ooreenstem met die belastingverligtingsmaatreėls wat in Nieu-Seeland beskikbaar is.

Deur ontleding van die vergelykende studie van die belastingverligtingsmaatreėls wat in Suid Afrika geld en die belastingverligtingsmaatreėls in Nieu-Seeland is gevind dat die Suid-Afrikaanse regering ver gevorder het om klein ondernemings in Suid-Afrika te ondersteun. Verder is daar gevind dat die belastingverligtingsmaatreėls in Suid-Afrika op gelyke voet staan met en in die meeste gevalle beter is as die belastingverligtingsmaatreėls wat vir klein ondernemings in Nieu-Seeland geld.

Die volgende aanbevelings, wat gegrond is op die belastingverligtingsmaatreėls wat in Nieu-Seeland geld, word gemaak:

  • dat klein ondernemings wat nie vir omsetbelasting geregistreer is nie, vir BTW mag verantwoord volgens die betalingsbasis;
  • dat die R1,5 miljoen-drempel vir kategorie F-ondernemers verhoog moet word. Hierdeur sal meer klein ondernemings kwalifiseer om BTW-opgawes slegs elke vier maande in plaas van elke twee maande in te dien.

Aangesien klein ondernemings steeds ’n belangerike rol speel in die skepping van werksgeleenthede en welvaart in die ekonomie kan, behoort die Suid-Afrikaanse regering dit te oorweeg om bogenoemde belastingverligtingsmaatreėls te implementeer sodat dit verdere verligting kan verskaf aan klein ondernemings. Verder behoort die regering die belastingverligtingsmaatreėls op ’n deurlopende grondslag te beoordeel om te verseker dat dit steeds op dieselfde vlak is as die van ander lande soortegelyk aan Suid-Afrika.

© 2010, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Please cite as follows:

Van der Merwe, A 2010, A comparative study of tax relief measures for small and medium enterprises in South Africa and New Zealand, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-07262011-134750/ >

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