Two businesses with similar sales can have very different tax positions depending on their legal structure and whether they qualify for the SBC regime. Qualifying requires meeting specific conditions, including a gross-income limit of R20 million, so entrepreneurs shouldn't assume every company simply pays a flat 27%.
Source: SARS — Budget 2026 Frequently Asked Questions
Frequently Asked Questions
Is 27% the tax on a company's turnover?
No — corporate income tax is applied to taxable income, not simply total turnover.
Can every small company use SBC rates?
No — the company must meet the requirements for Small Business Corporation status.
What is the SBC gross-income limit for 2026/27?
SARS states that qualifying SBCs must have gross income of no more than R20 million, among other requirements.