OneFileMoney

‹ All calculators · Business

Small business corporation tax

A qualifying small business corporation (SBC) pays nothing on its first slice of profit and lower rates after that, instead of a flat 27%.

Tax as an SBCR70,970R91,030 less than the normal 27%
  • SBC taxR70,970
  • Normal company tax (27%)R162,000
  • Effective SBC rate11.8%
How it works, with your numbers
  1. Taxable income of R600,000 is in the SBC band from R550,001: R57,470 + 27% of the amount over R550,000 = R70,970.
  2. A normal company pays 27% of R600,000 = R162,000.
SBC table (years ending 1 April 2026 to 31 March 2027)
  • R0 to R99,000: 0%
  • R99,001 to R365,000: 7%
  • R365,001 to R550,000: R18,620 + 21%
  • R550,001 and more: R57,470 + 27%
To qualify, the company must
  • Have gross income of R20 million or less for the year.
  • Be owned entirely by individuals, none of whom hold shares in another company (with some exceptions such as listed shares).
  • Earn no more than 20% from investment income and personal services together.
  • Not be a personal service provider.

For illustration only. This is a guideline to help you plan, not tax advice: a registered tax practitioner must review and approve the final figures before you file.