How corporate tax works in South Africa
South Africa taxes resident companies on worldwide income at a flat 27%, cut from 28% for years ending after March 2023. No provincial corporate surcharge exists.
Small businesses climb a ladder from zero to R95,750 through 7% and 21% to 27% above R550,000, with turnover, shareholder and activity tests. Micros under R1 million turnover may elect turnover tax of 0% to 3% instead.
Groups above EUR 750 million face the 15% global minimum through enacted domestic top-up law with 2026 registrations open. Dividends between resident companies are generally exempt.
Tax rates at a glance
- Corporate rate
- 27%Flat
- Small-business top
- 27%
- Turnover top
- 3%
- Dividends tax
- 20%
- Global minimum
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesRegional operatorsInvestorsCross-border groups
Watch out for
- Small-business status has all-or-nothing tests. One corporate shareholder or a breach of turnover caps pushes the whole profit to 27%.
- Turnover tax trades simplicity for deductions. Electing it forfeits expense, allowance and loss claims, which hurts margin businesses.
- Provisional company tax runs twice yearly with a top-up. Underestimation penalties bite without careful mid-year forecasting.
- Transfer pricing, thin capitalisation and CFC rules police cross-border groups. Documentation follows OECD lines with SARS-specific filing.
Frequently asked questions
Does South Africa have corporate tax?
Yes, 27% flat for ordinary companies with small-business ladders from zero and turnover tax for micros.
What is the small-business rate in South Africa?
Zero to R95,750, then 7% and 21% ladders to 27% above R550,000 for qualifying companies under R20 million turnover.
Does Pillar Two apply in South Africa?
Yes. The Global Minimum Tax Act applies 15% to large groups from 2024 financial years, with SARS registration open in 2026.