Small Business Corporation Tax 2026/27
Small Business Corporation Tax 2026/27
A qualifying small company pays tax on a progressive scale starting at 0%, instead of the flat 27% corporate rate. The SBC rate table for years of assessment ending 1 April 2026 to 31 March 2027.
SBC rate by taxable income (2026/27)
| R1 to R99,000 | 0% |
| R99,001 to R365,000 | 7% of the amount above R99,000 |
| R365,001 to R550,000 | R18,620 + 21% of the amount above R365,000 |
| R550,001 and above | R57,470 + 27% of the amount above R550,000 |
The point of it
- The first R99,000 of taxable income is tax-free, versus a flat 27% on every rand for a standard company
- An SBC must meet the qualifying tests (shareholding, gross income mix and turnover) every year -- it is not automatic
Guidance only -- not tax advice. SBC status has strict qualifying rules (all shareholders natural persons, turnover under the cap, limited investment/professional income). Confirm you qualify before relying on these rates. Verify at sars.gov.za.
Sources: SARS / National Treasury Budget 2026 Tax Guide · SARS Small Business Corporations
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