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Home/Calculators/SBC Tax Calculator

SBC Tax Calculator

Calculate Small Business Corporation tax and compare it with the standard 27% company tax rate. See how much your business can save with SBC status.

Updated March 2026 · Current SARS rates

SBC vs Standard Tax

Instantly compare Small Business Corporation tax against the standard 27% company tax rate to see your savings

Progressive Brackets

Accurate calculation using all four SBC tax brackets from 0% up to 27% on taxable income above R550,000

Qualification Check

Enter your annual turnover to check whether your company qualifies for SBC status (must be R20m or less)

SBC Tax Calculator

Enter your taxable income to compare SBC vs standard tax

R

Your company's taxable income for the year

R

To check SBC qualification (must be ≤ R20m)

Ready to Calculate

Enter your taxable income to see SBC tax vs standard company tax

SBC Tax Brackets 2026/2027

Progressive tax rates for qualifying Small Business Corporations under Section 12E

Taxable IncomeRateDescription
R0 - R99,0000%No tax payable
R99,001 - R365,0007%7% of amount above R99,000
R365,001 - R550,00021%R18,620 + 21% of amount above R365,000
R550,001+27%R57,470 + 27% of amount above R550,000

Standard company tax comparison:

Standard rate: 27% flat rate on all taxable income

SBC advantage: First R99,000 is tax-free, and lower rates apply up to R550,000

Do You Qualify for SBC?

Your company must meet all of the following requirements to qualify for SBC tax rates

Natural Person Shareholders

All shareholders must be natural persons (individuals) — not trusts, companies, or other entities

Annual Turnover ≤ R20 million

The gross income (turnover) of the company must not exceed R20 million for the year of assessment

Not a Personal Service Provider

The company must not be a personal service provider (PSP) as defined in the Fourth Schedule

Investment Income ≤ 20%

Not more than 20% of total receipts and accruals (excluding capital gains) may consist of investment income

Close Corporation or Private Company

Must be a close corporation, private company, or personal liability company registered in South Africa

SBC Tax Calculator FAQs

Common questions about Small Business Corporation tax rates in South Africa

A Small Business Corporation is a private company that qualifies for reduced tax rates under Section 12E of the Income Tax Act. SBCs benefit from progressive tax brackets starting at 0% instead of the flat 27% company tax rate, providing significant tax savings for small businesses.
For the 2026/2027 tax year, SBC tax rates are: 0% on taxable income up to R99,000; 7% on income from R99,001 to R365,000; 21% on income from R365,001 to R550,000; and 27% on income above R550,000. This progressive structure means SBCs pay significantly less tax than companies taxed at the flat 27% rate.
To qualify as an SBC, all shareholders must be natural persons (not trusts or other companies), annual turnover must not exceed R20 million, the company must not be a personal service provider (PSP), and not more than 20% of gross income can come from investment income. The company must also be a close corporation, private company, or personal liability company.
No. One of the key requirements for SBC status is that all shareholders must be natural persons (individuals). If a trust holds shares in the company, it does not qualify for SBC status and will be taxed at the standard company tax rate of 27%.
The savings depend on your taxable income. For example, on R500,000 taxable income, SBC tax is approximately R36,920 compared to R135,000 at the standard 27% rate, saving you around R98,080. On R300,000 taxable income, you would save approximately R66,930. The lower your income, the greater the proportional savings.

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Important Disclaimer

Accounter does not provide accounting, tax, business or legal advice. This calculator has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.