Small Business Tax Calculator
Calculate Small Business Corporation (SBC) tax using 2025 SARS graduated rates. Compare SBC rates against standard 27% CIT. Includes Section 12E 100% asset deduction, dividends tax, and turnover tax for micro businesses.
Quick Calculator Get a fast estimate
R
R
SBC tax payable
R 47 198
Effective tax rate
0.09%
Marginal tax rate
0.21%
Standard CIT (27%)
R 135 000
Tax saving vs CIT
R 87 802
Qualifies for SBC?
Yes — turnover R3,000,000 ≤ R20m
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How to Use the SBC Tax Calculator
Enter your taxable income and annual turnover. The calculator applies the 2025 SBC graduated tax rates and shows how much you save compared to standard 27% corporate income tax.
The Extended Calculator shows the detailed tax bracket breakdown, dividends tax, and a comparison table. The Professional Calculator includes an SBC qualification checklist, provisional tax schedule, and turnover tax for micro businesses.
Need more detail?
Extended Calculator More options, charts, and scenario comparison
R
SBC tax breakdown
R 47 198
After-tax income
R 452 802
Effective rate
0.09%
| Taxable income bracket | Rate | Tax on bracket |
|---|---|---|
| R0 – R95,750 | 0.00% | R 0 |
| R95,751 – R365,000 | 0.07% | R 18 848 |
| R365,001 – R550,000 | 0.21% | R 28 350 |
| R550,001+ | 0.27% | — |
SBC Tax Rates 2025 (1 March 2024 – 28 February 2025)
| Taxable income | Rate | Tax payable |
|---|---|---|
| R0 – R95,750 | 0% | R0 |
| R95,751 – R365,000 | 7% | 7% of amount above R95,750 |
| R365,001 – R550,000 | 21% | R18,848 + 21% above R365,000 |
| R550,001+ | 27% | R57,710 + 27% above R550,000 |
SBC Qualification Requirements
Must be: CC, Pty Ltd, or co-operative
Annual gross income ≤ R20 million
Passive income ≤ 20% of gross income
No shareholder holds shares in another company
in a similar trade to the SBC
Not a Personal Service Company (PSC)
Need full precision?
Professional Calculator Complete parameters, sensitivity analysis, and detailed breakdown
R
SBC qualification
QUALIFIES for SBC rates
Turnover limit
Pass (≤ R20m)
Section 12E applies?
Yes — 100% asset deduction
Frequently Asked Questions
2025: 0% to R95,750; 7% on R95,751–R365,000; 21% on R365,001–R550,000; 27% above R550,000. For R500,000 taxable income: R18,848 + 21% × R135,000 = R47,198. Standard CIT would be R135,000 — saving R87,802.
CC/Pty Ltd/co-op with gross income ≤ R20m, passive income ≤ 20% of gross income, shareholders hold no shares in similar trade companies, and not a Personal Service Company. Sole proprietors do NOT qualify — they pay personal income tax.
100% capital allowance in year of purchase for qualifying SBCs. Buy R500,000 of equipment → R500,000 deduction in Year 1 → reduces taxable income to near zero. Combined with SBC graduated rates, a startup can pay almost no tax in its first high-investment years.
For businesses with gross turnover ≤ R1m: 0% below R335,000; 1% R335k–R500k; 2% R500k–R750k; 3% R750k–R1m. Replaces income tax and includes VAT waiver. No expense records needed. Apply to SARS by 31 August for the current tax year.
1st provisional: within 6 months of year start. 2nd provisional: at year end. For Feb year-end: P1 due 31 August, P2 due 28 February. Optional 3rd payment by 30 September. Underestimate by >20% triggers a 20% penalty on the shortfall.