What qualifies as a small business corporation?
To qualify as an SBC, a business must meet certain requirements, such as having a gross income of less than R20 million. The business can be a close corporation, co-operative, or private company. Any one of these business structures, including personal liability companies, can qualify as an SBC.
Who qualifies for SBC SARS?
Small Business Corporation (SBC)
Small businesses with an annual turnover of up to R20 million may qualify to pay Income Tax at a reduced tax rate. If you indicate that you are a small business on your Income Tax Return (ITR14), and meet all the requirements, the reduced rates will be applied automatically.
What are the benefits of a small business corporation?
Small business corporations
An SBC benefits from a reduced income tax liability through reduced income tax rates and accelerated depreciation allowance for movable assets. Most companies pay income tax at a flat tax rate of 28% on their taxable income.
What is investment income for small business corporation?
“Investment income” includes dividends, foreign dividends, royalties, rental in respect of immovable property, annuities or income of a similar nature, interest and proceeds from investment or trading in financial instruments, marketable securities or immovable property.
small business corporation
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