Company Income Tax Calculator — South Africa 2026/2027
Calculate corporate tax or small business corporation (SBC) tax using SARS 2026/2027 rates. Updated April 2026.
How company income tax works in South Africa — 2026/2027
Corporate tax — 27% flat
All registered companies and close corporations pay a flat 27% on their taxable income. No brackets — one flat rate applies to all income.
Small Business Corporation (SBC)
Companies with gross income below R20 million and meeting SARS SBC criteria qualify for lower progressive tax rates — starting at 0% up to R99,000.
Provisional tax applies
Companies pay provisional tax twice a year — in August and February — based on estimated taxable income for the year.
Dividends tax — 20%
When a company pays dividends to shareholders, 20% dividends withholding tax applies on the amount distributed.
Corporate tax — step-by-step
| Step | Description | Formula |
|---|---|---|
| 1 | Determine taxable income | Revenue − Allowable deductions |
| 2 | Apply flat rate | Taxable income × 27% |
| 3 | Subtract any credits | Tax payable − Tax credits |
| 4 | Pay provisional tax | Two payments — Aug & Feb |
2026/2027 SBC tax brackets
| Taxable Income (Annual) | Tax Rate | Base Tax |
|---|---|---|
| R0 – R99,000 | 0% | R0 |
| R99,001 – R365,000 | 7% | R0 |
| R365,001 – R550,000 | 21% | R18,620 |
| R550,001 and above | 27% | R57,470 |
Corporate vs SBC — comparison
| Feature | Corporate Tax | SBC Tax |
|---|---|---|
| Tax rate | 27% flat | 0% to 27% progressive |
| Gross income limit | No limit | Below R20 million |
| Shareholders limit | No limit | Max 5 natural persons |
| Investment income | Allowed | Max 20% of income |
| Best for | Large companies | Small businesses |