If your company qualifies as a Small Business Corporation (SBC), you stop paying the flat 27% corporate tax rate and shift to a sliding scale that starts at 0%.
SARS SBC tax rates for 2026/2027
For the 2026/2027 tax year, SARS SBC rates are: 0% on taxable income up to R99,000; 7% from R99,001 to R365,000; 21% from R365,001 to R550,000; and 27% above R550,000.
A normal company with R500,000 profit pays R135,000 in tax. An SBC pays roughly R47,000 — saving close to R88,000 a year.
Who qualifies as an SBC
To qualify, all shareholders must be natural persons, annual turnover must be under R20 million, and the company cannot be a personal service provider. No more than 20% of gross income may come from investment income.
Speak to a registered tax practitioner before electing SBC status.
Source: South African Revenue Service; Income Tax Act, Section 12E.
