Company Tax Calculator South Africa
What your company owes SARS for 2026/2027, on the flat rate, the Small Business Corporation scale or turnover tax.
A company pays 27% of its taxable income. A company that passes the Small Business Corporation test pays nothing on the first R99,000 and climbs to 27% only above R550,000. A micro business with turnover under R2,300,000 can skip income tax altogether and pay up to 3% of sales instead. Enter the figure and the calculator shows the tax and the working.
Know the number. Now file the return.
Govchain prepares and submits the ITR14 and both IRP6 provisional returns through a registered tax practitioner, from R270 a return. Bank statements in, assessment out.
Does your company qualify as a Small Business Corporation?
Section 12E of the Income Tax Act sets the test, and every part of it has to hold for the whole year of assessment:
- Gross income for the year is R20,000,000 or less.
- Every shareholder is a natural person, for the whole year. One trust or holding company on the share register fails the test.
- No shareholder holds shares in any other company, other than listed shares, unit trusts, a body corporate or a dormant shelf company.
- Not more than 20% of income comes from investment income and personal services together. Personal services means work done personally by a shareholder or a connected person in a field such as accounting, law, consulting, IT or medicine, unless the company employs at least three full-time staff who are not shareholders or their relatives.
- The company is not a personal service provider.
The one-person consultancy is where most companies fall down. Trade through a Pty Ltd, do the work yourself, employ nobody, and the personal services rule puts you on the flat 27%. Hire three unrelated full-timers and the same company is an SBC. The status is claimed on the ITR14 each year, so it is worth checking before the return goes in, not after.
SBC tax table for 2026/2027
For years of assessment ending between 1 April 2026 and 31 March 2027. The 2026 Budget lifted the nil band from R95,750 to R99,000; the upper thresholds did not move.
| Taxable income | Tax |
|---|---|
| R0 to R99,000 | 0% |
| R99,001 to R365,000 | 7% of the amount above R99,000 |
| R365,001 to R550,000 | R18,620 + 21% of the amount above R365,000 |
| Above R550,000 | R57,470 + 27% of the amount above R550,000 |
An SBC also writes off manufacturing plant in full in the year of purchase and other assets over three years at 50%, 30% and 20%, which brings taxable income down before the table applies. The calculator takes the taxable income you give it and does not model those allowances.
Turnover tax for micro businesses, 2026/2027
A sole proprietor, partnership, close corporation or company with taxable turnover of R2,300,000 or less can register for turnover tax instead of income tax. It is worked out on sales, not profit, so it suits a business with few expenses. The 2026 Budget rebuilt the scale when the qualifying limit rose to R2,300,000:
| Taxable turnover | Tax |
|---|---|
| R0 to R600,000 | 0% |
| R600,001 to R950,000 | 1% of the amount above R600,000 |
| R950,001 to R1,400,000 | R3,500 + 2% of the amount above R950,000 |
| Above R1,400,000 | R12,500 + 3% of the amount above R1,400,000 |
Whether it beats the SBC scale depends on your margin. At R800,000 of turnover a micro business pays R2,000. An SBC with the same turnover and R300,000 of profit pays R14,070, but one with R80,000 of profit pays nothing. Run both through the calculator before you register, because a turnover tax election binds you for three years unless you stop qualifying. Read more in our turnover tax entry.
Common questions
Is company tax paid on turnover or on profit?
Does a dormant company pay company tax?
What about dividends tax?
More free tools
- Provisional tax calculatorEach IRP6 payment for the year, with the SARS due dates and the underestimation rule.
- VAT calculatorAdd 15% VAT to a price or take it out of a VAT-inclusive amount.
- PAYE calculatorYour monthly take-home pay after PAYE and UIF, with pension, bonus and medical aid.
- Company health checkSee your company’s CIPC status and outstanding filings in one view.
This calculator is a guide. It applies the SARS rate tables to the taxable income or turnover you enter and cannot see assessed losses, capital allowances, s12E asset write-offs or whether your company passes the SBC test. The tax on assessment is the number that counts. Rates verified 21 September 2026 against the SARS Companies, Trusts and Small Business Corporations and Turnover Tax rate pages.