MCG Advisory Services — Tax Tools
Corporate Income Tax Estimator
Answer the qualification questions below to determine which tax regime applies to your business, then calculate your estimated liability for the year.
A Small Business Corporation (SBC) qualifies for significantly reduced tax rates — including a 0% band on the first R95 750 of taxable income. All five criteria must be met.
Is the entity a private company (Pty Ltd)?
Close corporations, co-operatives, and personal service providers do not qualify
Is gross annual income below R20 million?
Auto-checked from your turnover above
Do all shareholders hold shares in this company only?
Shareholders may not hold shares in any other company — listed shares and body corporate interests are excepted
Is passive income less than 20% of gross income?
Passive income includes interest, rental income, royalties, and annuities
Is the company not a personal service provider or labour broker?
A personal service provider renders services through one individual to one or a small number of clients
Businesses with turnover under R1 million may elect to pay Turnover Tax — a simplified regime calculated on gross turnover with very low rates and minimal compliance requirements.
Is annual turnover R1 million or less?
Auto-checked from your turnover above
Is the business a sole proprietor, partnership, close corporation, co-operative, or private company?
Is investment income less than 10% of total receipts?
Investment income includes interest, foreign dividends, and rental from fixed property
Is the business not a personal service provider?
Tax payable
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Effective rate
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After-tax profit
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Saving vs standard rate
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