Small Business Tax Calculator South Africa

SA Small Business Tax Calculator

SMALL BUSINESS INCOME TAX CALCULATOR

We have the SARS SBC tax rates built in – no need to look them up!

Financial year end fall within the following period: Taxable Income (R):

Corporations of all sizes in South Africa are subject to a flat corporation tax rate of 27%. However, if the business is included in the category of special trust, the tax rate becomes 45%. Apart from this, companies also have to pay the capital gains tax or CGT of 21.6%, whereas this value for special trusts is around 36%.

Wondering how to determine your business taxes from the allocated tax rates? Here is a complete guide on business tax calculation, so dive right in to learn more about it.

Small Business Corporations Tax Calculation

Small businesses are subjected to multiple taxes. Hence, it is important to keep a record of all these taxes and make payments on time, or they will be left with a heavy penalty. Here are the different types of taxes you will have to pay as an SBC in South Africa.

Dividends Tax is applicable to businesses that pay dividends to shareholders. This way, the dividends themselves are taxed.
Provisional Tax is payable twice or thrice each year. It is simply a method of paying your income tax, which is broken down into smaller, consecutive amounts.
Capital Gains Tax is only applicable to businesses that have sold an asset. These assets include property, furniture, shares, or even the entire business. Plus, it is a once-off payment, which is derived from the profit on the money you made from the sale.
VAT or value-added tax is an amount that is placed on the consumption of goods and services. And if your business has an income exceeding R1 million, you are liable to pay VAT and it varies depending on the category of goods. Moreover, the current VAT is around 15% on the supply of most goods and services with some exemptions on imported goods.

Here is a breakdown of the standard tax rates for small businesses (self-proprietors and micro-businesses) operating in South Africa. These values will remain effective for the year 2025.

Taxable Income	Tax Rates
R1 to R237,000	18% of the taxable income.
R237,001 to R370,500	R42,678 + 26% of the taxable income in this range
R370,501 to R512,800	R77,362 + 31% of the taxable income in this range
R512,801 to R673,000	R121,475 + 36% of the taxable income in this range
R673,001 to R857,900	R179,147 + 39% of the taxable income in this range
R857,901 to R1,817,000	R251,258 + 41% of the taxable income in this range
R1,817,001 and above	R644,489 + 45% of the taxable income in this range

Following is the tax rate table for small business corporations running in South Africa. These values are applicable to the 2025 year.

Taxable Income	Tax Rates
R1 to R95,750	No tax
R95,751 to R365,000	7% of the taxable income in this range.
R365,001 to R550,000	R18,848 + 21% of the taxable income in this range.
R550,001 and above	R57,698 + 27% of the taxable income in this range.

Please note that you will have to pay at least two amounts in advance. It is equally important to calculate this value yearly beforehand, or you will end up with a hefty amount at the end of the year.

Turnover Tax in South Africa

Turnover tax is an alternative method of tax for businesses operating in South Africa. This is a special tax for small businesses with an annual turnover of R1,000,000 or less. This type of tax replaces corporate income tax, capital gains, VAT, and dividend tax, though your business will still remain in the VAT system.

The current turnover tax rate in South Africa for businesses is as follows. These tax rates will remain effective until February 2025.

Turnover	Tax Rates
R0 to R335,000	No tax
R335,001 to R500,000	15 of each R1 above R335,000
R500,001 to R750,000	R1650 + 2% of any amount above R500,000
R750,001 and above.	R6650 + 3% of any amount above R750,000

Though there are business calculators available online, it is ideal that you perform these calculations yourself or hire an accountant. Using mathematical systems and software may help you with accuracy and timely tax filings.

Corporate Tax Exemptions in South Africa

If you are registered as a public benefit organization, there is no need to pay corporate taxes. Other businesses can get the following values deducted from taxable income as allowed business expenses.

Business Expenses: This category includes all outgoing expenses in running the business. It includes everything from material to employee costs, equipment costs, business rental costs, office supplies, uniforms, wholesale purchases, financial charges, legal fees, utilities, marketing, and administration costs.
Capital Expenses: This category includes all expenses like capital equipment, renovation costs, and machinery.
Start-up Expenses: These include the expenditure the business has utilized before the commencement of its first year of trade. However, the condition is that they should be considered as business expenses within general business operations.
Net Operating Losses: This includes any losses the business has carried forward from the previous years.

In essence, according to SARS, a business starts paying taxes once its annual income exceeds R335,000. However, the taxes differ between small and big businesses, depending on their income, number of employees, and the nature of the industry. I hope this guide has helped you figure out how to calculate your business's annual taxes.