Small Business Corporation (SBC)
Quick Answer
What is Small Business Corporation (SBC)?
An SBC is a qualifying small company that pays reduced income tax: 0% up to R99,000 profit, then 7%, 21% and 27% (2026/27).
Small Business Corporation (SBC) explained
Qualification requires gross income of R20 million or less, natural-person shareholders with no other private company shares, limited investment income, and not being a personal service provider.
Who it applies to: Owner-managed trading companies under the R20 million gross income line.
Cost: Free – claimed on the ITR14.
Related terms and guides
Official source: SARS (South African Revenue Service)
Always verify this information with official South African government sources. Rules, fees and thresholds change. Check SARS, CIPC, the Department of Employment and Labour or gov.za before you act.
About BizAnswers: BizAnswers is a privately owned South African company – not a government department. Our guides are free to read and show you how to do things yourself through official channels. If you would rather have the paperwork handled for you, we assist individuals and businesses with filing their South African tax returns and staying compliant, which is a paid service, not a free government service. Contact us for help.
Last reviewed: September 2026 by the BizAnswers editorial team. How we write and check our guides.