Tag Archive: CFO Softline and Sage


Two tax proposals relevant to micro and small business caught my attention during Pravin Ghordan’s budget speech.

  1. a.       Turnover tax for micro businesses

Several reforms of the turnover tax for micro businesses (with annual turnover below R1 million) were announced in 2011. Building on these reforms, small business will now be given the option of making payment of turnover tax, VAT and employees’ tax at twice-yearly intervals from 1 March 2012.

It is further envisaged that a single combined return will be filed on a twice-yearly basis from 1 March 2013. The number of returns and payments therefore required for these taxes will fall from about 18 per year to only two a year in 2013.

A word of warning though – the build-up of tax liability will require such taxpayers to ensure that funds are available when payment is due.

  1. b.      Small business corporations

To encourage the growth of small business corporations (with annual turnover under R14 million), government proposes to increase the tax-free threshold for such businesses as follows.

Taxable Income              Rate of tax
R0 – R63,556 0%
R63,557 – R350,000 7% of amount above R63,556 but less than R350,000
R350,001 and above R20,051 + 28% of amount above R350,000

This table will be effective for years of assessment ending on or after 1 April 2012.

-By Rob Wilkie, CFO Softline and Sage AAMEA

Education matters and governments commitment to spending more over the medium term is certainly welcome.

When considering the skills an entrepreneur requires to succeed in building a business we tend to focus on vision and creativity, selling technique, planning and people management. What we often overlook are the basic skills of writing and speaking.

Writing is an important part of thinking, communicating and selling; speaking opens the interests of other and welcomes your proposition; and the best way to enhance these skills is by reading.  These are the most dominant skills we learn in school and are the foundation to our education.

Pravin Gordhan said in his budget speech that to put our economy on a more rapid growth path, we needed to effectively direct and manage improvements in education and skills development.

Education is not a luxury but a responsibility that we as parents owe to our children.  It is said that upon the education of our children, the fate of our country depends.

-By Rob Wilkie, CFO Softline and Sage AAMEA

Infrastructure expansion investment was a central priority in Pravin Gordhan’s budget speech.

It is a fact that poor infrastructure impedes economic growth and international competitiveness, and I applaud government’s intention to improve the supply and quality of infrastructure services.

The budget review lists 43 major projects adding up to R3.2 trillion between 2012 and 2010. A summary is presented in the table below.

The real challenge however is in execution. Drawing a house is easier than actually building it. In his budget speech Pravin Gordhan acknowledged long delays and significant cost over-runs and committed to stepping up management so that projects are delivered on time and on budget.

Small business plays a critical role in its contribution to GDP and employment. It’s time government plays its role.

-By Rob Wilkie, CFO Softline and Sage AAMEA