What is Company Tax
Corporate taxes in South Africa is currently 27% for tax years end after 31 March 2023 (prior to this it was 28%).
Income taxes for small business is collected via provisional tax returns with the annual tax return becoming the "balancing" return. The annual income tax return must be within the parameters as set by SARS to avoid penalties and interest.
Taxable income is the corporate income on which your tax scale is to be applied.
South African business tax has some other systems available to small and micro businesses to alleviate the burden of tax and/or compliance.
Other business taxes are the Small Business Tax and Turnover Tax systems.
Business owners are in it for the long term and should remember that it is paramount to run your business as a separate legal entity as this is the view the revenue service take. This has far reaching consequences relating to the fiduciary duty of the director and eligibility to continue holding office.
Frequently asked questions
Is dividends tax the same as company tax
No. Dividend tax is paid on the dividend declared. A dividend is a declaration made after year end profits and losses have been reported.
How much tax do you pay if you have a company or a close corporation
Company tax and close corporations' tax is an annual tax rate of 27%
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