A person does not qualify as a micro business for a year of assessment where—
| (a) |
that person at any time during that year of assessment holds any shares or has any interest in the equity of a company other than a share or interest described in paragraph 4; |
| (b) |
more than 20 per cent of that person’s total receipts during that year of assessment consists of- |
| (i) |
where that person is a natural person (or the deceased or insolvent estate of a natural person that was a registered micro business at the time of death or insolvency), income from the rendering of a professional service; and |
| (ii) |
where that person is a company, investment income and income from the rendering of a professional service; |
[Paragraph 3(b) of the Sixth Schedule substituted by section 86(1)(a) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 March 2011]
| (c) |
at any time during that year of assessment that person is a "personal service provider" or a "labour broker", as defined in the Fourth Schedule, other than a labour broker in respect of which a certificate of exemption has been issued in terms of paragraph 2(5) of that Schedule; |
| (d) |
[Paragraph 3(d) of the Sixth Schedule deleted by section 86(1)(b) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 March 2011]; |
| (e) |
the total of all amounts received by that person from the disposal of— |
| (i) |
immovable property, used mainly for business purposes; and |
[Paragraph 3(e)(i) of the Sixth Schedule substituted by section 86(1)(c) of the Taxation Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 March 2011]
| (ii) |
any other asset of a capital nature used mainly for business purposes, other than any financial instrument, |
[Paragraph 3(e)(ii) of the Sixth Schedule substituted by section 86(1)(c) of the Taxation Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 March 2011]
exceeds R1,5 million over a period of three years comprising the current year of assessment and the immediately preceding two years of assessment, or such shorter period during which that person was a registered micro business;
(f) in the case of a company—
| (i) |
its year of assessment ends on a date other than the last day of February; |
| (ii) |
at any time during its year of assessment, any holder of shares in that micro business is a person other than a natural person (or the deceased or insolvent estate of a natural person); |
[Paragraph 3(f)(ii) of the Sixth Schedule substituted by section 114(a) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]
| (iii) |
at any time during its year of assessment, any holder of shares in that micro business holds any shares or has any interest in the equity of any other company other than a share or interest described in paragraph 4: |
[Words preceding proviso of paragraph 3(f)(iii) of the Sixth Schedule substituted by section 114(b) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]
Provided that the provisions of this item do not apply to the holding of any shares in or interest in the equity of a company, if the company—
| (aa) |
has not during any year of assessment— |
| (A) |
carried on any trade; and |
| (B) |
owned assets, the total market value of which exceeds R5 000; or |
| (bb) |
has taken the steps contemplated in section 41(4) to liquidate, wind up or deregister: Provided further that this paragraph ceases to apply if the company has at any stage withdrawn any step so taken or does anything to invalidate any step so taken, with the result that the company will not be liquidated, wound up or deregistered; |
[Proviso to paragraph 3(f)(iii) of the Sixth Schedule substituted by section 86(1)(d) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 March 2011]
| (iv) |
it is a public benefit organisation approved by the Commissioner in terms of section 30; |
[Paragraph 3(f)(iv) of the Sixth Schedule substituted by section 89(a) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]
| (v) |
it is a recreational club approved by the Commissioner in terms of section 30A; |
| (vi) |
it is an association approved by the Commissioner in terms of section 30B; or |
[Paragraph 3(f)(vi) of the Sixth Schedule inserted by section 89(b) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]
| (vii) |
it is a small business funding entity approved by the Commissioner in terms of section 30C; |
[Paragraph 3(f)(vii) of the Sixth Schedule inserted by section 89(b) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]
| (g) |
in the case of a person that is a partner in a partnership during that year of assessment— |
| (i) |
any of the partners in that partnership is not a natural person; |
| (ii) |
that person is a partner in more than one partnership at any time during that year of assessment; or |
[Paragraph 3(g)(ii) of the Sixth Schedule substituted by section 97(1)(a) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2012]
| (iii) |
the qualifying turnover of that partnership for that year of assessment exceeds the amount described in paragraph 2. |
[Paragraph 3(g)(iii) of the Sixth Schedule substituted by section 97(1)(b) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2012]
| (iv) |
[Paragraph 3(g)(iv) of the Sixth Schedule deleted by section 97(1)(c) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2012].
|
| (h) |
[Paragraph 3(h) of the Sixth Schedule deleted by section 97(1)(d) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2012]. |
Protection of Businesses Act, 1978
