Small Business Corporation (SBC) Tax Savings Estimator
Estimate your corporate tax savings by qualifying as a SARS Small Business Corporation (SBC).
R
Enter your annual net profit before corporate tax is calculated.
Basic SBC Requirements
To qualify for these progressive tax rates in South Africa, your company must meet these SARS rules:
- All shareholders must be natural persons (no holding companies or trusts).
- Gross turnover for the tax year must not exceed **R20 million**.
- Not more than 20% of gross income can consist of "investment income" and "personal service" income.
- Shareholders must not hold shares in any other active company.
Estimated Savings
Estimated Tax Savings
R 0
Money kept in your business compared to standard 27% corporate tax.
Standard Company Tax (27%):R 0
SBC Tiered Tax (2026/2027):R 0
Why the SBC Tax Structure is Critical for South African Startups
Standard corporate income tax in South Africa is calculated at a flat 27% rate, meaning you pay R27,000 for every R100,000 in taxable profit. Qualifying as an SBC allows your business to pay 0% tax on the first R99,000 of profit, and only 7% on profit up to R365,000. This structure is a powerful incentive designed by SARS to support early-stage growth and job creation.