Understanding corporate income tax (CIT) is vital for businesses aiming to thrive in South Africa’s dynamic economy. Whether you’re an established local company, a growing startup, or an international investor, staying compliant with tax obligations is key to avoiding penalties and building long-term success.

Administered by the South African Revenue Service (SARS), CIT applies to companies and other juristic entities operating within the country. From tax rates to filing schedules, this article breaks down the essential details you need to know to manage your corporate tax responsibilities efficiently and confidently.

Corporate income tax rates

South Africa has a competitive corporate tax system that caters to businesses of different sizes:

• Standard rate: For years of assessment ending on or after 31 March 2023, the standard CIT rate is 27% of taxable income.
• Small business corporations (SBCs): Qualifying SBCs benefit from a progressive tax rate structure. For the tax year ending between 1 April 2024 and 31 March 2025, the rates are:
  • 0% on the first ZAR 95,750 of taxable income.
  • 7% on taxable income above ZAR 95,750 but not exceeding ZAR 365,000.
  • 21% on taxable income above ZAR 365,000 but not exceeding ZAR 550,000.
  • 27% on taxable income exceeding ZAR 550,000.

These rates ensure that small businesses can grow sustainably while contributing to the economy.

Filing requirements

Compliance with SARS regulations requires businesses to meet specific registration and filing obligations.

All businesses liable for CIT must register with SARS as taxpayers. Companies registered with the Companies and Intellectual Property Commission (CIPC) are automatically registered with SARS.

Companies are required to submit an annual income tax return (ITR14) within 12 months from the end of their financial year. The return should include signed-off financial statements and any supplementary schedules as required.

Most companies must submit provisional tax returns (IRP6) twice a year:

• The first return is due six months from the start of the financial year.
• The second return is due at the financial year-end.
• An optional third payment can be made six months after the year-end to avoid interest on underpayment.

Payment of corporate income tax

Tax payments in South Africa are straightforward, with multiple options available:

• Provisional tax payments: These are based on estimated taxable income and are due as outlined above.
• Final payment: Upon assessment, any outstanding tax must be paid within the period specified in the assessment notice.
• Payment methods: Payments can be made via online banking, electronic funds transfer, bank deposits, eFiling, or, for foreign payments, the SWIFT method.

Additional considerations

Dividends tax

A 20% dividends tax is imposed on dividends declared and paid by resident companies, as well as by non-resident companies in respect of shares listed on a South African exchange.

Record-keeping

Companies must retain all supporting documents related to their tax returns for at least five years, as SARS may request these for audit purposes.

Sector-specific rates

Certain industries, such as gold mining and long-term insurance, may be subject to special CIT rates.

Why corporate tax compliance matters

Staying compliant with South Africa’s corporate income tax regulations is essential for avoiding penalties, ensuring business continuity, and maintaining a positive reputation. Tax compliance also demonstrates financial transparency and accountability, which is critical for stakeholders, investors, and regulatory bodies.

Given the complexities of CIT, partnering with experienced professionals can help businesses navigate filing requirements, tax rates, and payment schedules efficiently.

How Accace Adept can help with corporate income tax

At Accace Adept, we specialize in corporate income tax services tailored to businesses operating in South Africa and globally. Our team of experienced professionals ensures your company remains compliant with SARS regulations while optimizing your tax position. From CIT registration and filings to provisional tax calculations and dividends tax advisory, we provide end-to-end support designed to simplify your tax processes.

What sets us apart is our ability to combine accounting, payroll, and corporate services under one roof, ensuring seamless solutions as your business grows or expands across borders. With Accace Adept, you can focus on driving your business forward while we handle the complexities of tax compliance. Get in touch today to learn how we can support your corporate tax needs in South Africa and beyond.

Michelle Martin

Managing Director | Accace Adept

Book a meeting with Michelle