Small business corporation tax calculator
A small business corporation (SBC) pays company tax on a sliding scale instead of the normal rate of 27%. Enter the company's taxable income to see the tax and the saving.
The rates apply to years of assessment ending on any date from 1 April 2026 to 31 March 2027.
How it's calculated
- The first R99 000 of taxable income is taxed at 0%.
- From R99 000 to R365 000 the rate is 7%, from R365 000 to R550 000 it is 21%, and above that 27%.
- Each rate applies only to the part of the income in its band.
An example
A small business corporation with R400 000 of taxable income pays R25 970, compared with R108 000 at the normal company rate.
Frequently asked questions
What is the normal company tax rate?
27% of taxable income for years of assessment ending from 1 April 2026 to 31 March 2027.
Why does the saving stop growing?
Above R550 000 every extra rand is taxed at 27%, the same as a normal company. The saving comes only from the lower bands.
Is this the same as turnover tax?
No. SBC tax is worked out on taxable income, after expenses. Turnover tax is worked out on turnover and has its own table.
Key terms
- SBC
- Small business corporation, a company that qualifies for the lower SARS company tax rates.
Up-to-date official data
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