South African Business Tax Calculator: Estimate Your Tax Liability

Running a business in South Africa comes with tax obligations. Understanding how much you owe SARS is crucial for planning and compliance. Our South African Business Tax Calculator helps business owners estimate their tax liability accurately.

What is Business Tax in South Africa?

Business tax refers to income tax levied on companies, trusts, and other legal entities in South Africa.

  • Companies pay corporate income tax (currently 28% for most companies).

  • Small business corporations (SBCs) enjoy reduced rates based on turnover.

  • Businesses must also account for VAT, PAYE, and other taxes.

  • Calculating taxes correctly ensures compliance and avoids penalties.

How Business Tax Works

  • Taxable Income: Profit after allowable expenses and deductions.

  • Corporate Tax Rate: Standard 28%, SBCs 0–27% depending on income brackets.

  • Provisional Tax: Companies must pay in advance in two installments per year.

  • Other Obligations: PAYE for employees, UIF, VAT, and dividends tax (if distributing profits).

Practical Example: Business Tax Calculation

Example:
ABC Trading Pty Ltd has:

  • Annual revenue = R2,000,000

  • Allowable business expenses = R1,200,000

Taxable income = R800,000

  • Corporate tax (28%) = R800,000 × 28% = R224,000

  • If ABC Trading is a Small Business Corporation with lower turnover, the tax may be reduced.

👉 The Business Tax Calculator can help determine exact liability based on your company type and income.

South African Business Tax Calculator

Use the calculator below to estimate your business tax liability:

South African Turnover Tax Calculator (2026)

Enter turnover to calculate tax

Enter details to calculate turnover tax

Why Use the Business Tax Calculator?

  • Helps business owners plan for tax payments.

  • Avoids underpayment penalties.

  • Compares tax for different company structures (SBC vs standard company).

  • Simplifies calculations for VAT, PAYE, and corporate tax planning.

Who Should Use the Calculator?

  • Company owners – to calculate annual corporate tax.

  • Small business owners – to check eligibility for SBC tax rates.

  • Accountants & bookkeepers – for client tax planning.

  • Freelancers & contractors operating as registered businesses – to anticipate tax obligations.

10 Frequently Asked Questions (FAQs)

1. What is the corporate tax rate in South Africa?

Standard companies pay 28%, while SBCs pay reduced rates based on taxable income.

2. Who qualifies as a Small Business Corporation (SBC)?

Companies with turnover ≤ R20 million, meeting specific criteria.

3. What is provisional tax for businesses?

Advance payments on estimated tax to avoid penalties at year-end.

4. Do all businesses pay VAT?

Only if registered for VAT (annual turnover > R1 million).

5. Are dividends tax included in business tax?

Dividends tax (20%) applies when distributing profits to shareholders, separate from corporate tax.

6. Can I deduct expenses from business income?

Yes, only allowable business expenses like salaries, rent, and operational costs.

7. How do I submit business tax returns?

Via SARS eFiling using the ITR14 form for companies.

8. What happens if my business underpays tax?

SARS may impose interest and penalties.

9. Can I estimate tax monthly?

Yes, using the calculator to plan provisional payments.

10. Are startups eligible for reduced tax?

Yes, qualifying startups under the SBC framework may benefit from lower rates.

Final Thoughts

Understanding your business tax liability is essential for compliance and financial planning. Our South African Business Tax Calculator makes it easier to estimate your tax, avoid penalties, and plan for growth.

👉 Use the calculator now to see how much your business owes SARS.