SBC Tax Calculator South Africa 2026/2027
Calculate your Small Business Corporation (SBC) tax and see exactly how much you save compared to the standard 27% corporate rate.
Confirm your company qualifies as an SBC for these rates to apply:
If any box is unchecked, the calculator will apply the standard 27% CIT rate, as SBC rates would not legally apply.
SBC Tax payable
R 0
Provides an estimate only, based on SARS Budget 2026 rates. If you do not qualify, try our Standard Company Tax Calculator.
SBC Tax Brackets (2026/2027)
| Taxable income | Rate |
|---|---|
| R0 – R99,000 | 0% |
| R99,001 – R365,000 | 7% of the amount above R99,000 |
| R365,001 – R550,000 | R18,620 + 21% of the amount above R365,000 |
| Above R550,000 | R57,470 + 27% of the amount above R550,000 |
What are the benefits of SBC Tax?
The Small Business Corporation (SBC) tax regime is designed to encourage small business growth by reducing the corporate tax burden. The primary benefits include:
- Tax-Free Threshold: The first R99,000 of your company's taxable income is completely tax-free (0%).
- Progressive Rates: You only pay 7% and 21% on the middle brackets, compared to the harsh flat 27% standard CIT rate.
- Accelerated Depreciation: Qualifying SBCs can write off 100% of the cost of manufacturing assets in the year they are brought into use, significantly lowering taxable income.
How do you qualify for SBC rates?
You cannot simply choose to pay SBC tax. Your company must strictly meet all of the following criteria set by SARS for the relevant year of assessment:
- It must be a private company, close corporation, co-operative, or personal liability company.
- Gross income for the year must not exceed R20 million.
- All shareholders or members must be natural persons (individuals) throughout the year.
- You cannot hold shares in any other private companies or members' interests in other close corporations (with limited exceptions).
- The company cannot be a Personal Service Provider (PSP).
- No more than 20% of total receipts can consist of investment income and income from rendering personal services.
Applying for SBC: There is no separate "SBC registration" form. You claim SBC status by answering "Yes" to the SBC qualification questions on your company's annual ITR14 tax return. SARS will automatically apply the SBC rates if your answers confirm you qualify.