South Africa corporate tax rate: 27% and small business corporations
South African companies pay income tax at 27%. Qualifying small business corporations pay graduated rates, and very small businesses can choose turnover tax instead.
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"South Africa corporate tax rate" and "south africa company tax rate" lead Google's suggestions. The rate was cut to 27% in 2022 and has stayed there.
Rates
| Company | Rate |
|---|---|
| Companies | 27% |
| Small business corporations | Graduated, from 0% to 27% |
| Micro businesses on turnover tax | Tax on turnover, not profit |
Check SARS's tables for the current SBC bands and turnover tax rates.
Small business corporations
To qualify, all shareholders must be natural persons who hold no shares in other companies (with exceptions), gross income must be under the SARS limit, and investment and personal service income must be limited.
Provisional tax
- First payment: six months into the year of assessment.
- Second payment: at year end.
- Optional third payment: after year end, to reduce interest.
Foreign income
Residents are taxed on worldwide income. A South African company earning from foreign clients includes it in rand at the applicable rate, with credits for foreign taxes where treaties allow.
Paying into South Africa: the local rail
| What | Detail |
|---|---|
| Local rail | Real-time clearing (RTC) and PayShap for instant transfers; EFT for batch payments |
| Run by | BankservAfrica |
| Settlement | RTC and PayShap in seconds; EFT within one to two business days |
Source: BankservAfrica. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
South African exchange control decides whether a South African company may hold proceeds abroad, so Rivet does not pitch offshore accounts to South African-registered companies. Rivet serves registered companies in supported countries, including foreign companies owned by South African founders where eligible. Rivet is not a bank; regulated partner institutions hold the funds. See Accounts.
Questions people ask
What is the corporate tax rate in South Africa?
27% for companies, for years ending on or after 31 March 2023.
What is a small business corporation?
A company meeting SARS's conditions on shareholders, gross income and activities, which pays graduated rates instead of the flat 27%.
When is provisional tax due?
The first payment six months into the year of assessment, the second at year end, and an optional third after.
How is foreign income taxed?
South African residents are taxed on worldwide income, with credits for foreign tax where applicable.
Sources
Alexia compares the accounts, cards and payment tools companies weigh before they switch, and writes Rivet's market guides for founders in a specific country. Prices in Alexia's comparisons come from each provider's own pricing page on the date given in the article, rules come from the regulator or tax authority that sets them, and every source is listed at the end.
More from Alexia M. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
- south africa corporate tax rate
- south africa company tax rate
- small business corporation
- turnover tax
- provisional tax
- sars
