HD Accountants

Accountants and tax consultants

021 785 3306

Income Tax Rates For Companies

Company Tax Rate

The company Income Tax Rate has been 28% for the last few years.

Small Business Corporation Tax Rates

If you meet the following requirements

• Turnover is less than 20 million per year
• Not more than 20% of income is derived from investment income
• The company doesnt render personal services
• The company isnt a personal services provider as defined in the Tax Act
• All shareholders are natural persons
• None of the shareholders hold shares in other companies - certain exclusions apply
• Also download and refer  to the Guide On Small Business Corporations

Then you can elect to be taxed at more favourable tax rates

Financial years ending on any date between 1 April 2021 and 31 March 2022:

​Taxable Income (R) ​                  Rate of Tax (R)

1 – 87 300 ​                                0% of taxable income

​87 301 – 365 000 ​                    7% of taxable income above 87 300

​365 001 – 550 000 ​                   19 439 + 21% of taxable income above 365 000

​550 001 and above ​                   58 289 + 28% of the amount above 550 000

Financial years ending on any date between 1 April 2020 and 31 March 2021:

​Taxable Income (R) ​                            Rate of Tax (R)

1 – 83 100 ​                                          0% of taxable income

​83 101 – 365 000 ​                               7% of taxable income above 83 100

​365 001 – 550 000 ​                              19 733 + 21% of taxable income above 365 000

​550 001 and above ​                                58 583 + 28% of the amount above 550 000