How company tax works
A South African company pays income tax at a flat 27% of its taxable income: its profit after the expenses the law allows. There’s no tax-free amount for an ordinary company, so the first rand of profit is taxed at the same rate as the last.
Small business corporations pay less. A private company, close corporation or co-operative owned entirely by people, with gross income of R20 million or less and little income from investments or personal services, uses a sliding table instead: nothing on the first R99,000, then 7%, 21% and finally 27% above R550,000.
Micro businesses with turnover up to R2.3 million a year (from 1 April 2026, as announced in Budget 2026) can choose turnover tax instead of income tax: a small percentage of what the business takes in, rather than a share of its profit. The first R600,000 of turnover is tax-free.
When the tax is paid
Companies pay provisional tax in two instalments during the year, six months in and at the year-end, with an optional third payment after the year ends to settle any balance before interest starts. If a due date falls on a weekend or public holiday, pay by the business day before.