• About Us
  • Write for Us
  • Paid Content Solutions
  • Contact Us
ExpertHub
  • HOME
  • LAUNCH
  • BUSINESS
  • LEADERSHIP
  • MONEY
  • SUCCESS
  • NEWS
    • All
    • Company Posts
    • ExpertHub Today
    Transunion Global Capability Centres Boom

    Global Capability Centres Boom As They Move Up The Value Chain

    Global Tech companies

    Global Tech Companies Are Turning To South Africa For Media And Marketing Expertise

    Innovation Summit

    Innovation Summit 2021 Showcases SA’s Top Tech Entrepreneurs

    Three customer experience strategies you’re missing-23Sep21

    Three Customer Experience Strategies You’re Missing

    Embracing digital 1st world, SMBs confid. to thrive-23Sep21

    Embracing A Digital-First World, SMBs Can Have The Confidence To Thrive

    SAB Foundation Calling All Entrepreneurs Tholoana Entps. Prog.

    Applications for SAB Foundation Are Now Open

    Trending Tags

    • About Us
      • Write for Us
      • Paid Content Services
      • Contact Us
    No Result
    View All Result
    • HOME
    • LAUNCH
    • BUSINESS
    • LEADERSHIP
    • MONEY
    • SUCCESS
    • NEWS
      • All
      • Company Posts
      • ExpertHub Today
      Transunion Global Capability Centres Boom

      Global Capability Centres Boom As They Move Up The Value Chain

      Global Tech companies

      Global Tech Companies Are Turning To South Africa For Media And Marketing Expertise

      Innovation Summit

      Innovation Summit 2021 Showcases SA’s Top Tech Entrepreneurs

      Three customer experience strategies you’re missing-23Sep21

      Three Customer Experience Strategies You’re Missing

      Embracing digital 1st world, SMBs confid. to thrive-23Sep21

      Embracing A Digital-First World, SMBs Can Have The Confidence To Thrive

      SAB Foundation Calling All Entrepreneurs Tholoana Entps. Prog.

      Applications for SAB Foundation Are Now Open

      Trending Tags

      • About Us
        • Write for Us
        • Paid Content Services
        • Contact Us
      No Result
      View All Result
      ExpertHub
      No Result
      View All Result
      Home NEWS ExpertHub Today

      20-Man Days A Year: That’s What SA Business Spend On Tax & Accounting

      ExpertHub Staff by ExpertHub Staff
      Aug 2, 2018
      in ExpertHub Today
      13
      tax-and-accounting
      Share on FacebookShare on TwitterShare on LinkedIn

      RelatedTopics

      Global Capability Centres Boom As They Move Up The Value Chain

      Global Tech Companies Are Turning To South Africa For Media And Marketing Expertise

      Innovation Summit 2021 Showcases SA’s Top Tech Entrepreneurs

      An economic report published bySagereveals that South African micro-businesses spend around 20 times more of their available hours on tax-related accounting than medium-sized companies, and around four times more of their available hours than small companies.

      This new global research highlights the impact of unfair and inefficient tax systems on Small & Medium Businesses around the world, including findings to suggest that the smallest 515,000 companies and startups registered in South Africa face some of the most significant administrative burdens. Undertaken by Plum Consulting, the research analyses the impact of direct and indirect costs of tax on Small & Medium Businesses, based on a survey of over 3,000 companies across 11 global markets.

      The report “A Taxing Problem: the impact of tax on small businesses” found that micro-businesses spend just under nine days per year in total on tax-related accounting, amounting to more than 2% of their working time spent on tax admin. On a more positive note, South African micro-businesses (less than five employees) are paying the lowest proportion of their taxes relative to profits compared to their larger counterparts among countries in the survey.

      South Africa and Ireland are the only countries where micro-businesses pay a lower proportion of their profits in tax than both Small & Medium Businesses. In South Africa, micro-businesses pay tax representing around 9% of profits, compared to around 23% for Small & Medium Businesses. In most countries, micro-businesses pay more than 20% of profits in tax, with Brazil’s micro-businesses paying the highest proportion of their profits in tax at 65%.

      The average South African company spends just over 20-man days a year on tax-related accounting, or more than 1% of total man hours. This compares favourably to the US (over 4%), Germany (around 3.7%), and Spain (more than 2.5%), but lags the performance of best-practice markets such as the UK and Singapore (both around 0.5%). Reducing man-hours lost to accounting could free time for South African businesses to spend on productive activities that add value to the economy.

      “Small & Medium Businesses make a significant contribution to the South African economy, making up 97% of all businesses, employing 70% of the total labour force, and paying 32.2% of corporate tax. The success of these businesses is crucial to growth, job creation and the provision of tax revenues to fund public services,” saysPieter Bensch, Executive Vice-President, Africa & Middle East at Sage.

      “It is important to help drive their productivity and growth by recognising the numerous issues they face as result of their size. Limited resources and large payments such as annual tax bills contribute to cashflow problems and operational inefficiencies, in addition to the unproductive hours these businesses log every year dealing with administrative burdens.”

      The failure rate of start-ups and small businesses in South Africa is one of the highest in the world, he adds. “Lack of finance, compliance burdens, infrastructure challenges, and late payments all play their part in this picture. A progressive tax regime and further streamlining of tax regulation could help improve their survival rates.”

      ExpertHub Staff

      ExpertHub Staff

      ExpertHub’s award-winning team of Staff Writers deliver unique, insightful and curated content from successful business leaders, authors and subject matter experts. This highly-experienced team understands the information that business readers are looking for, what’s unique and impactful, and how to distil key ideas into actionable insights.

      Quick Links

      • Business Plan Advice
      • Business Plan Format Guide
      • Business Plan Format
      • Sample Business Plans

      NEWSLETTER SIGN-UP

      Sign-up for Weekly ExpertHub Updates

      * indicates required




      EXPERT INSIGHTS

      RevenuePartners Time Management for Sales Teams

      Advice from RevenuePartners to hack sales team productivity

      by Andrew Honey

      Time management is one of the costliest challenges in business today. Here are 6 hacks from RevenuePartners to help you...

      Top Reasons Why You Should Study Business Administration

      Top Reasons Why You Should Study Business Administration

      by Adrian Lomezzo

      Administration course, these reasons should help you make the right choice

      Effective Video Strategies For Your Online Store

      Effective Video Strategies For Your Online Store

      by Frank Hamilton

      Video marketing is an incredibly powerful digital marketing technique. Here’s how you can use it for e-commerce to promote your...

      Top salespeople use 1 simple strategy to outperform everyone else

      The Top 1% of Salespeople Do One Thing Differently That Sets Them Apart

      by Max Landesman

      Top Salespeople Use This 1 Simple Strategy To Outperform Everyone Else

      • HOME
      • LAUNCH
      • BUSINESS
      • LEADERSHIP
      • MONEY
      • SUCCESS
      • NEWS
      • About Us
        • Write for Us
        • Paid Content Services
        • Contact Us
      • About Us
      • Write for Us
      • Paid Content Services
      • Contact Us
      • Terms & Conditions
      • Data Privacy Policy
      • Privacy Policy
      • Sitemap

      Copyright © 2022 ExpertHub.info
      Revenue Growth Experts

      No Result
      View All Result
      • HOME
      • LAUNCH
      • BUSINESS
      • LEADERSHIP
      • MONEY
      • SUCCESS
      • NEWS
      • About Us
        • Write for Us
        • Paid Content Services
        • Contact Us

      Copyright © 2022 ExpertHub.info
      Revenue Growth Experts

      Login to your account below

      Forgotten Password?

      Fill the forms bellow to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In