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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

Year end between 1 April 2018 and 31 March 2019

Taxable income:                                       Tax rate:

R 0 - R 78,150                                          -  No income tax payable

R 78,150 - R 365,000                               -  7% of taxable income above R 78,150

R 365,001 - R 550,000                             -  R 20,080 + 21% of taxable income above R 365,000

Above R 550,000                                       -  R 58,930 + 28% of taxable income above R 550,000

Year end between 1 April 2017 and 31 March 2018

Taxable income                                         Tax rate

R 0 - R 75,750                                           -  No income tax payable

R 75,751 - R 365,000                               -  7% of taxable income above R 75,750

R 365,001 - R 550,000                             -  R 20,248 + 21% of taxable income above R 365,000

Above R 550,000                                       -  R 59,098 + 28% of taxable income above R 550,000

Year end between 1 April 2016 and 31 March 2017

Taxable income                                         Tax rate

R 0 - R 75,000                                           -  No income tax payable

R 75,000 - R 365,000                               -  7% of taxable income above R 75,000

R 365,001 - R 550,000                             -  R 20,300 + 21% of taxable income above R 365,000

Above R 550,000                                       -  R 59,150 + 28% of taxable income above R 550,000

Another option is to look at the guide for Turnover Tax