Corporate Income Tax (CIT)
All South African registered companies pay tax on their taxable income. The standard rate is 27%. Small Business Corporations (SBCs) qualify for reduced rates.
Small Business Corporation Tax Rates 2024
- R0 to R95,750: 0%
- R95,751 to R365,000: 7% of amount above R95,750
- R365,001 to R550,000: R18,848 plus 21% above R365,000
- Above R550,000: R57,698 plus 27% above R550,000
To qualify as an SBC: turnover under R20M, SA resident company, no more than 20% passive income, no corporate shareholders.
Provisional Tax
Companies pay provisional tax twice a year - within 6 months of financial year start, and at year-end. Underpaying by more than 20% triggers a penalty.
Key Deductions
- Business expenses (rent, salaries, insurance, marketing)
- Depreciation on business assets
- Solar panels - 125% deduction under Section 12B
- Bad debts written off