Small business corporation (SBC) tax calculator 2026/27

SBC tax rates for 2026/27

For years of assessment ending between 1 April 2026 and 31 March 2027. Other companies pay 27%.

Worked example

A qualifying company with taxable income of R500,000:

1. Bracket R365,001 – R550,000: R18,620 + 21% of taxable income above R365,000
2. Amount above R365,000 R500,000 − R365,000 = R135,000
3. Rate on that amount 21% × R135,000 = R28,350
4. Plus the bracket's fixed amount R18,620 + R28,350 = R46,970

SBC tax: R46,970. At the 27% company rate it would be 27% × R500,000 = R135,000, so the company pays R88,030 less as an SBC.

Questions people ask

What are the SBC tax rates for 2026/27?

For years of assessment ending between 1 April 2026 and 31 March 2027: Up to R99,000: 0%; R99,001 – R365,000: 7% of taxable income above R99,000; R365,001 – R550,000: R18,620 + 21% of taxable income above R365,000; R550,001 and above: R57,470 + 27% of taxable income above R550,000. Other companies pay 27%.

Who qualifies as a small business corporation?

A South African private company, close corporation or co-operative that, for the year: has only natural persons as shareholders; whose shareholders hold no shares in other companies (with some exceptions, such as listed shares); has gross income of R20 million or less; earns no more than 20% of its receipts and capital gains from investment income and personal services together; and is not a personal service provider (Income Tax Act, section 12E(4)).

How much less tax does an SBC pay?

On R550,000 of taxable income, an SBC pays R57,470 against R148,500 at the 27% company rate.