How to Calculate Business Tax in South Africa
Step-by-step guide to calculating tax for your business
What This Calculator Does
Learn how to calculate business tax in South Africa. Covers company tax, sole proprietor tax, partnership tax, and which expenses you can deduct from your business income.
Company vs Sole Proprietor
Understand the tax difference between company and personal tax rates.
Taxable Income Calculation
Learn how to calculate your business taxable income correctly.
Deductible Expenses
Complete list of expenses you can deduct from business income.
Provisional Tax Guide
Understand provisional tax calculations and payment schedules.
How It Works
Determine Business Structure
Company (27%), sole proprietor (personal rates), or partnership.
Calculate Gross Profit
Revenue minus cost of sales equals gross profit.
Deduct Allowable Expenses
Subtract all legitimate business expenses.
Apply Correct Tax Rate
Use company rate or personal tax tables.
Why Use Our Calculator
- Choose the right business structure
- Maximize legitimate deductions
- Avoid SARS penalties
- Plan provisional payments
- Understand depreciation allowances
Need More Than a Calculator?
ProcessX automates your entire bookkeeping, not just tax calculations. Track expenses, manage invoices, and generate reports automatically.
- AI-powered document processing
- Automatic VAT calculations
- SARS-ready tax reports
Frequently Asked Questions
How is sole proprietor tax calculated?
Sole proprietors pay tax at personal income tax rates on business profit (revenue minus expenses). Business income is added to other personal income and taxed on the total.
What is the company tax rate for small businesses?
Small Business Corporations (SBC) with turnover under R20m have progressive rates: 0% on first R95,750, 7% up to R365,000, 21% up to R550,000, then 27%.
Can I deduct home office expenses?
Yes, if you regularly work from home and have a dedicated workspace. You can deduct a portion of rent/bond interest, utilities, and rates based on the area used.
What business expenses are NOT deductible?
Non-deductible expenses include personal expenses, entertainment (limited), fines and penalties, donations over limits, capital expenditure (use depreciation instead), and income tax itself.
Other Tax Calculators
Explore our full suite of free tax calculators.
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