Corporate Income Tax (CIT), also known as a business tax, is a tax imposed on businesses incorporated under the laws of the Republic of South.
What is corporate income tax (CIT) or business tax? Corporate Income Tax (CIT) is a business tax imposed on companies resident in the Republic of South Africa i.e. incorporated under the laws of, or which are effectively managed in, the Republic, and which derive income from within or outside the Republic. Non-resident companies which operate through a branch or which have a permanent establishment within the Republic are subject to tax on all income from a source within the Republic.
CIT is applicable to companies which are liable under the South African Income Tax Act, 1962 for the payment of tax on all income received by or accrued to them within a financial year.
Corporate Income Tax is payable at a rate of 28%, March 2020.
Companies, Trusts and Small Business Corporations (SBC) Tax Rates
Companies – no changes from last year
| Financial years ending on any date between | Rate of Tax |
|---|---|
| 1 April 2020 – 31 March 2021 | 28% |
| 1 April 2019 – 31 March 2020 | 28% |
| 1 April 2018 – 31 March 2019 | 28% |
| 1 April 2017 – 31 March 2018 | 28% |
| 1 April 2016 – 31 March 2017 | 28% |
| 1 April 2015 – 31 March 2016 | 28% |
| 1 April 2014 – 31 March 2015 | 28% |
Trusts (other than special trusts) – no changes from last year
| Year of assessment | Rate of Tax |
|---|---|
| | |
| 1 March 2020 – 28 February 2021 | 45% |
| 1 March 2019 – 29 February 2020 | 45% |
| 1 March 2018 – 28 February 2019 | 45% |
| 1 March 2017 – 28 February 2018 | 45% |
| 1 March 2016 – 28 February 2017 | 41% |
| 1 March 2015 – 29 February 2016 | 41% |
| 1 March 2014 – 28 February 2015 | 40% |
Small Business Corporations (SBC) – See changes from last year
Financial years ending on any date between 1 April 2020 and 31 March 2021:
| Taxable Income (R) | Rate of Tax (R) |
| 1 – 83 100 | 0% of taxable income |
| 83 101 – 365 000 | 7% of taxable income above 83 100 |
| 365 001 – 550 000 | 19 733 + 21% of taxable income above 365 000 |
| 550 001 and above | 58 583 + 28% of the amount above 550 000 |
Financial years ending on any date between 1 April 2019 and 31 March 2020:
| Taxable Income (R) | Rate of Tax (R) |
| 0 – 79 000 | 0% of taxable income |
| 79 001 – 365 000 | 7% of taxable income above 79 000 |
| 365 001 – 550 000 | 20 020 + 21% of taxable income above 365 000 |
| 550 001 and above | 58 870 + 28% of the amount above 550 000 |