Source: https://rivet.global/blog/south-africa-corporate-tax-rate-27
Published: 2026-10-28 · Updated: 2026-10-28 · By Alexia M.

# South Africa corporate tax rate: 27% and small business corporations

South African company tax in 2026: the 27% rate, small business corporation rates, turnover tax, provisional tax dates and the records SARS expects.

## Key takeaways

- South Africa's company income tax rate is 27% for years of assessment ending on or after 31 March 2023.
- Small business corporations meeting SARS's conditions pay graduated rates starting at 0%.
- Micro businesses below the turnover tax threshold can elect turnover tax instead of income tax.
- Companies pay provisional tax twice a year, with an optional third payment.

"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

1. First payment: six months into the year of assessment.
2. Second payment: at year end.
3. 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](https://www.bankservafrica.com/). 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](/accounts).

## Questions

### 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.