What are Small Business Tax Rates?
These are preferential tax rates given to Small Business Owners and Small Business Corporations. Small business tax South rates are preferential rates aimed at promoting growth in the SME Sector.
Running a small business in South Africa can be tough with all the compliance and tax obligations. Business expenses keep climbing and you wonder how you will be paying tax. Small businesses must also pay PAYE, UIF and SDL on time.
Small businesses make a considerable contribution to the South African economy. According to TIPS (Trade and Industrial Policy Strategies), small business comprised 30% of total employment in 2023.
Small Businesses contribute approximately a third of the total value added to the South African economy.
How can I get a proposal/quote/price estimate for Small Business tax and accounting services?
Use any of the following easy channels to request a quote or a call:
Small business tax rates enjoy additional allowances offered by the South African Revenue Service (SARS).
Small Business Corporations Tax or SBC Tax Rates tables - 2024
Tax Years of assessment ending any date between 1 April 2023 and 31 March 2024:
|
TAXABLE INCOME IN RANDS
|
RATE OF TAX IN RANDS
|
|
1 – 95 750
|
0% of taxable income
|
|
95 751 – 365 000
|
7% of taxable income above 95 750
|
|
365 001 – 550 000
|
18 848 + 21% of taxable income above R365 000
|
|
550 001 and above
|
57 698 + 27% of the amount above 550 000
|
Small Business Corporations Tax or SBC Tax Rates tables - 2023
Tax Years of assessment ending any date between 1 April 2022 and 31 March 2023:
|
TAXABLE INCOME IN RANDS
|
RATE OF TAX IN RANDS
|
|
1 – 91 250
|
0% of taxable income
|
|
91 251 – 365 000
|
7% of taxable income above 91 250
|
|
365 001 – 550 000
|
18 848 + 21% of taxable income above R365 000
|
|
550 001 and above
|
57 698 + 27% of the amount above 550 000
|
Frequently asked questions
What is the Corporation Income Tax rate?
Currently the tax rate for corporations and companies is 27% for financial years ending after 31 March 2023.
What is Small Business Tax South Africa?
Small Business tax and allowances were introduced to alleviate the pressure on small business and to help the sector grow and succeed.
What is Pay as you Earn (PAYE)?
PAYE is employee tax and stands for Pay as You Earn.
What is the percentage of Small Businesses in South Africa?
South Africa still has a small business deficit compared to its peers. However, there was approximately a 4.4 % increase in small businesses from 2019 to 2022.
Which businesses are in high demand?
There is a high increase in the demand for artisinal and value-added wines, beers, and spirits. The health and wellness industry has also grown leaps and bounds.
Do I have what it takes to manage my own business?
You will be your own biggest asset. You need to determine if you have the physical and emotional stamina. You will have to delve deep and have an accurate picture of your own abilities and development needs.
What business should I choose?
The best business to choose is the one you will be skilled and passionate about. Matching your background together with a need in the market can help drive success.
What do I need to success in business?
There are four pillars to making your small business succeed:
- Sound Management Practices
- Industry experience
- Support
- Strong planning skills
How do I hire qualified employees?
There are a couple of options:
- Use a recruitment specialist.
- Recruit internally, for example, promotions of existing employees.
- Utilize platforms like LinkedIn or Careers24 or PNET to place your own ad and manage the recruitment process yourself.
What type of Business Structure can a Small Business be?
A small business must be a close corporation or a company. This is because it is a "corporations" tax.
Must a Small Business have Financial Statements?
A registered entity that is actively trading must have financial statements. The laws, duties and obligations as they relate to the financial statements depend on the entity type.
Need a Quote for Small Business Income Tax services?
Do you require assistance with your Individual Income Tax returns? Complete this ZPA Proposal Request Form for an affordable income tax services quote.
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