In the case of registered companies, qualifying businesses can register as small business corporations (SBCs) in order to enjoy further tax incentives, including reduced corporate tax rates.
Presently, these include no tax for the first R 67 111 of annual taxable income for the business, followed by 7% tax up to R365 000, 21% up to R 550 000, and the normal corporate tax rate of 28% applies for taxable income above R 550 000; visit SARS website to find out more. It should also be noted that the maximum annual gross income limit has gone up from R 14, 000 000 to R 20, 000 000 to qualify as a SBC.