South Africa Company and SBC Tax Calculator 2026/27
Estimate corporate income tax for an ordinary company at 27% or a qualifying small business corporation under the 2026/27 SBC table, then subtract provisional payments entered.
Enter company taxable income
Confirm entity type, SBC eligibility, taxable-income reconciliation and company year end before using the rates.
Ordinary company rate
For years of assessment ending from 1 April 2026 to 31 March 2027, SARS lists the ordinary company income-tax rate as 27%. The calculator multiplies taxable income by 27% for this option. It does not apply the rate to turnover because taxable income is determined after tax rules, allowable deductions and adjustments.
A sole proprietor is generally taxed as an individual rather than a company, and a trust or partnership has different treatment. Select ordinary company only for an entity and period to which that rate applies. Legal form matters more than using the word business.
SBC table for 2026/27
A qualifying small business corporation pays zero through R99,000 taxable income, 7% above that through R365,000, R18,620 plus 21% above R365,000 through R550,000, and R57,470 plus 27% above R550,000. The script implements those published brackets.
The table is progressive: reaching a higher band does not tax all income at the higher percentage. The effective rate can therefore be below the marginal rate. This relief is available only if every statutory SBC requirement is met.
SBC qualification
SARS guidance describes requirements involving natural-person shareholders or members, a gross-income ceiling, limits on investment income and personal-service status, among other rules. Group structures, shareholdings and services can disqualify an entity even when taxable income is small.
The calculator cannot test qualification from one dropdown. Complete an annual eligibility checklist with supporting ownership and income records. Do not select SBC simply because the company calls itself a small business or has fewer employees.
Taxable income
Start with accounting profit and prepare a tax reconciliation for non-deductible expenses, exempt or non-taxable amounts, capital allowances, recoupments, assessed losses and other tax adjustments. Bank deposits include loans, capital and VAT that may not be income, while invoiced income can be taxable before cash collection depending on the rules.
Maintain a trial balance and supporting schedules. Estimating tax as a percentage of cash balance can produce both underpayment and a liquidity crisis. Use the calculator only after taxable income is reasonably forecast.
Expenses and evidence
An expense paid by a company is not automatically deductible. It must meet the relevant tax requirements and be supported. Private or capital expenditure, fines and unsupported claims can be disallowed. Mixed-use costs need a defensible allocation.
Keep invoices, contracts, proof of payment, business purpose and asset registers. Related-party payments and owner expenses deserve particular review. Correct bookkeeping classification is the starting point, not the final tax decision.
Capital allowances
Accounting depreciation is generally not the tax deduction. Tax legislation provides allowances for qualifying assets at prescribed rates and conditions. Disposal can create recoupments or capital-gains consequences. The page expects those effects already reflected in taxable income.
Maintain separate accounting and tax fixed-asset schedules. Record acquisition, brought-into-use date, cost, private use, allowance claimed and disposal. Do not enter book depreciation as a credit in the calculator.
Assessed losses
Company assessed losses are subject to tax rules and possible limitation. A carried-forward loss shown in accounting records is not automatically available in full. Ownership changes, trade continuity and current legislation can affect use.
The calculator has no loss field because the appropriate deductible amount should be incorporated into taxable income after review. Preserve SARS assessments and a roll-forward schedule rather than relying on an old spreadsheet total.
Provisional tax
Companies are provisional taxpayers. Payments are advances against annual liability and IRP6 estimates, dates and penalties require separate calculation. The page subtracts the amount entered only to show a possible remaining annual balance; it does not decide the first or second provisional payment.
Use the correct company year end and SARS payment reference. Reconcile payments to the statement of account. A payment made under the wrong reference may not reduce the displayed liability on SARS systems until corrected.
Credits and withholding
The verified-credits field is for amounts that legally reduce company tax and can be substantiated. It is not for ordinary expenses, VAT input tax or PAYE withheld from employees. Foreign tax credits and other relief can involve limits and detailed evidence.
Leave the field at zero unless the credit calculation is complete. A refund expectation based on an unverified credit can create cash-flow risk. The final assessment and SARS account determine the balance.
Other taxes and obligations
Corporate income tax is only one obligation. VAT, PAYE, UIF, SDL, dividends tax, customs, excise, turnover tax or sector levies may apply separately. An income-tax estimate of zero does not make the business tax free or remove filing duties.
Build a compliance calendar with registration, return and payment dates. Separate collected VAT and payroll deductions from operating cash. Late submission and payment can add penalties and interest even when the underlying business is loss-making.
Interpreting the two rate options
At R750,000 of taxable income, the ordinary-company option applies 27% to the full amount. The SBC option uses the progressive bands and reaches the same 27% marginal band only on income above R550,000. The difference is meaningful only if the entity actually satisfies every SBC condition for the relevant year.
Do not manipulate invoices, split one trade between connected entities or delay bookkeeping merely to remain inside a band. Taxable income must reflect the legal taxpayer and correct period. If ownership, personal-service activity, investment income or group structure makes eligibility uncertain, calculate cash reserves conservatively and obtain a documented review before an IRP6 estimate or annual return is submitted.
Year-end review
Update the forecast before the financial year closes, reconcile revenue, expenses, assets, loans and payroll, and identify once-off transactions. Confirm the applicable rate period from the actual year-end date. A company ending before 1 April 2026 may fall under the prior period even when the return is filed later.
Obtain professional review for restructures, cross-border transactions, share-based payments, connected parties or complex incentives. File through authorised SARS channels and retain submission and payment proof. This calculator supplies table arithmetic, not a tax opinion.
Questions that affect this result
Is every small company an SBC?
No. Detailed ownership, income and activity requirements must all be met.
Should I enter turnover as taxable income?
No. Taxable income is determined after applying tax rules and adjustments.
Does accounting depreciation reduce this result directly?
No. Tax capital allowances follow separate rules and should be reflected in taxable income.
Is the remaining balance the next IRP6 payment?
No. It is an annual comparison after entered payments; provisional periods and estimate rules are separate.
Does zero company income tax mean no tax filings?
No. Returns and other taxes such as VAT or payroll obligations may still apply.