South African tax education
Corporate Tax Rates in South Africa
A practical breakdown of South African company tax rates, SBC rates, and rate-checking steps for the 2026/27 assessment period.
Last updated: 20 May 2026
- The standard corporate income tax rate remains 27% for years of assessment ending from 1 April 2026 to 31 March 2027, according to SARS Budget 2026 guidance.
- Small Business Corporation rates are progressive and apply only if the company meets the SBC requirements.
- Special regimes, assessed losses, dividends, VAT, PAYE, and cross-border issues can change the final tax position.
Which rate applies?
A resident company is generally taxed under corporate income tax on taxable income. SARS lists corporate income tax as applying to private companies, public companies, close corporations, co-operatives, non-profit companies, small business corporations, and other company forms.
Do not choose a rate from a summary alone. Confirm the company type, assessment year-end, taxable income, and whether any special regime applies.
2026/27 quick rate table
| Taxpayer or regime | Rate or treatment to check |
|---|---|
| Standard company | 27% for years of assessment ending 1 April 2026 to 31 March 2027, per SARS Budget 2026 FAQs. |
| Qualifying Small Business Corporation | Progressive SBC table, not the ordinary flat company rate. |
| Approved Special Economic Zone company | Potential reduced rate where all requirements are met. |
| Dividends paid to shareholders | Separate dividends tax checks may apply. |
Before using the rate
Reconcile accounting profit to taxable income.
Check assessed losses, capital allowances, and disallowed expenditure.
Confirm whether the company is a personal service provider, SBC, SEZ company, or part of a group.
Keep board packs, tax computations, and SARS correspondence with the return.
Records to keep
- SARS notices, assessments, eFiling confirmations, and statements of account.
- Invoices, contracts, bank statements, payroll records, VAT reports, or calculations that support the position.
- A short note showing the tax year, rule checked, source used, and reason for the treatment.
FAQ
Are all companies taxed at 27%?
No. The standard company rate is a starting point. SBCs, approved SEZ companies, and special facts may require a different calculation.
Where should I verify the current rate?
Use SARS corporate income tax, SARS tax-rate tables, and the current Budget FAQ before finalising a return.
Can I rely on this guide for a final tax decision?
No. This guide is educational. Verify current SARS guidance and get professional advice where the amount is material or the facts are complex.
Official checks
Use these official or primary-source pages to verify the latest position before filing, registering, paying, or changing a tax treatment.
Source and disclaimer
This site provides general educational information for South African taxpayers. It is not tax, legal, accounting, or financial advice. Tax rules and SARS processes can change, so verify current requirements with SARS or a qualified professional before acting.