Weak economy cuts number of South African companies paying tax
JOHANNESBURG – Nearly half of companies in South Africa had no taxable income in 2017 while a quarter recorded a taxable loss, the South African Revenue service said on Monday, based on its latest 2017/18 data, highlighting the impact of weak economic growth.
The revenue service said based on its 2017 data, 48.3% of companies had taxable income equal to zero, 27.4% reported an assessed loss, and 24.3% had positive taxable income. Companies have up to 12 months from the end of their financial cycles to submit tax returns.
“The decline can largely be attributed to sluggish economic growth, structural challenges in some sectors of the economy, low confidence levels and political uncertainty,” the revenue service said. “All of these factors play a role in subdued investment activity, resulting in lower profitability for companies.”
Source: iol.co.za
