Corporate Tax Income tax: Companies

Financial years ending on any date between 1 April 2022 and 30 March 2023

Years of assessment ending on any date on or after 31 March 2023

Small Business Corporations

Financial years ending on or after 31 March 2023

Financial years ending on any date between 1 April 2021 and 30 March 2023

Currently gross income threshold for small business corporation is limited to R20 million effective from 1 April 2013.

A small business corporation (SBC) is any close corporation, co-operative, private company, or a personal liability company where:

•  The entire shareholding for the entire year of assessment is held by natural persons;
• The gross income for the year of assessment does not exceed R 20 Million;
• None of the shareholders, at any time during the year of assessment, held any shares or had any interest in any other company, other than a listed company, portfolio in a collective investment scheme, sectional title body corporate, share block companies, friendly society , less than 5% in co-operatives, venture capital company, any company, close corporation, or co-operative, which has not during any year of assessment carried on any trade and has never owned assets of more than R5 000 in value, or a company or close corporation that has taken steps to liquidate , wind up or deregister;
• Not more than 20% of the company’s total receipts and accruals and all capital gains collectively of investment income and income derived from rendering personal services;
• The entity does not meet the definition of a personal services provider.

Micro Business

Financial years ending on any date between 1 March 2022 and 28 February 2023

Financial years ending on any date between 1 March 2021 and 28 February 2022

Sole proprietors, partnerships and incorporated businesses may elect to be taxed on a turnover based system.

• Natural persons, companies, and close corporations can qualify as micro businesses, provided their “qualifying turnover” for a year of assessment does not exceed R1 million,
• A trust cannot qualify as a micro business.