Calculate Small Business Corporation tax and compare it with the standard 27% company tax rate. See how much your business saves with SBC status in 2026/2027.
Instantly compare Small Business Corporation tax against the standard 27% company tax rate to see your savings
Accurate calculation using all four SBC tax brackets from 0% up to 27% on taxable income above R550,000
Enter your annual turnover to check whether your company qualifies for SBC status (must be R20m or less)
Compare SBC tax rates against standard 27% company tax
Enter your taxable income to see SBC tax vs standard company tax
Progressive tax rates for qualifying Small Business Corporations under Section 12E
| Taxable Income | Rate | Description |
|---|---|---|
| R0 - R99,000 | 0% | No tax payable |
| R99,001 - R365,000 | 7% | 7% of amount above R99,000 |
| R365,001 - R550,000 | 21% | 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
Source: SARS Budget 2026 FAQ for 2026/27 SBC tax rates. The R95,750 tax-free threshold applies to the prior 2025/26 table, while SARS Budget 2026 lists R99,000 for years ending 1 April 2026 to 31 March 2027.
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
Common questions about Small Business Corporation tax rates in South Africa
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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.