SARS small business tax requirements depend on how the business is structured. A company pays income tax at the standard 27% rate (years of assessment ending 1 April 2026 to 31 March 2027), or at the lower small business corporation rates if it qualifies. A micro business can opt for Turnover Tax instead. Every business also carries filing deadlines: the company income tax return, provisional tax, and VAT or PAYE where registered.
This page is a guide to the main small business taxes, the current rate tables and the filing cycle. SARS publishes the Tax Guide for Small Businesses and runs a dedicated small business page; use them to confirm detail for your own situation.
Business Requirements at a Glance
The recurring obligations, by frequency.
- Monthly — the EMP201 employer declaration for PAYE, SDL and UIF, due by the 7th of the following month (or the Friday before if the 7th falls on a weekend or public holiday)
- Every two months, or monthly for larger vendors — the VAT return and payment, where registered. Vendors with annual turnover below R30 million file two-monthly; above R30 million, monthly
- Twice a year, plus an optional third — provisional tax payments
- Twice a year and annually — the EMP501 employer reconciliation: an interim season from 1 September to 31 October and an annual season from 1 April to 31 May
- Annually — the company income tax return (ITR14), due within 12 months after the financial year end, as set out in the SARS tax calendar
The tax rates for 2026/27 are in the section on tax, licence and compliance requirements below.
Registration and Legal Requirements
A company must register with CIPC first. SARS then generates the income tax reference number automatically, and the company representative registers on eFiling. VAT and PAYE/SDL/UIF are added on eFiling under SARS Registered Details. This is the route for SARS business tax registration; see the SARS small business page.
- VAT — compulsory once taxable supplies exceed R2.3 million in any consecutive 12-month period (raised from R1 million with effect from 1 April 2026). Applications must be made within 21 business days. Details are on the SARS VAT registration page
- Turnover Tax — for micro businesses with qualifying turnover of R2.3 million or less from 1 April 2026 (previously R1 million). You can register on the SARS Online Query System. See the Turnover Tax page
- Penalties and interest — SARS charges interest on late or underpaid tax at 10.25% per annum from 2 March 2026. Late VAT payments attract a 10% penalty. An administrative penalty for a missing return can range from R250 up to R16 000 for each month the non-compliance continues
The penalty range is explained on SARS’s administrative penalty page.
Documents and Ownership Information Required
There is no single document list for small business tax. What you need depends on which tax type you are registering for or filing. When you register for VAT or PAYE/SDL/UIF on eFiling, SARS issues a Registration Application Review Notice listing the supporting documents. They must be submitted within 21 business days or the application is rejected, as the SARS PAYE registration page explains.
- Your CIPC registration details and the company’s tax reference number
- Identity details of the directors or members and the company representative
- The supporting documents listed in your Registration Application Review Notice
- Payroll and employee records if you pay remuneration
- Financial records and tax invoices — employers must keep records for five years from the date of submission of a return
Tax, Licence and Compliance Requirements
These are the rate tables most small businesses ask about. Figures change at each Budget, so check the date range against your financial year.
Small business corporation (SBC) rates, years of assessment ending 1 April 2026 to 31 March 2027 (these apply only if the company qualifies as an SBC; see SARS company and SBC rates):
- Taxable income R1 to R99 000: 0%
- R99 001 to R365 000: 7% of taxable income above R99 000
- R365 001 to R550 000: R18 620 plus 21% of taxable income above R365 000
- R550 001 and above: R57 470 plus 27% of taxable income above R550 000
A company that does not qualify as an SBC pays the standard company rate of 27%. Our guide to SARS small business corporation requirements sets out who qualifies.
Turnover Tax rates for 2026/27 (see the SARS Budget 2026 FAQ):
- R0 to R600 000: 0%
- R600 001 to R950 000: 1% of the amount above R600 000
- R950 001 to R1 400 000: R3 500 plus 2% of the amount above R950 000
- Above R1 400 000: R12 500 plus 3% of the amount above R1 400 000
Other recurring taxes and contributions
- SDL — 1% of payroll for employers with annual payroll above R500 000
- UIF — 2% of remuneration (1% from the employee and 1% from the employer)
- Dividends tax — 20% of the dividend paid
- CIPC annual return — filed electronically with the latest beneficial ownership declaration. Two or more outstanding returns can trigger deregistration; see the CIPC annual returns FAQ
- Compensation Fund Return of Earnings — employers submit this to the Department of Employment and Labour in an annual window. Confirm the current window with the Compensation Fund, as it changes each year
Process, Deadlines and Ongoing Obligations
- Company income tax return (ITR14) — within 12 months after the financial year end. SARS confirms this on its ITR14 FAQ
- Provisional tax — the first payment within six months of the start of the year of assessment, the second no later than the last day of the year, and an optional third within six months after year end (seven months if the year ends on the last day of February)
- VAT — eFiling returns and payment by the last business day of the month after the tax period; manual submissions by the 25th
- EMP201 — by the 7th of each month, with EMP501 reconciliations in the two seasons above
The SARS provisional tax guide confirms the provisional tax periods. The wording on the general SARS calendar can read as if the first period falls after year end; the guide is the authority.
Frequently Asked Questions
What are the SARS small business tax rates?
For years of assessment ending 1 April 2026 to 31 March 2027, a qualifying small business corporation pays 0% on the first R99 000 of taxable income, then 7%, 21% and 27% in higher brackets. Other companies pay 27%. Turnover Tax runs from 0% to R600 000, then 1% to 3% up to R2.3 million. The full tables are above.
Is there a SARS tax guide for small businesses?
Yes. SARS publishes the Tax Guide for Small Businesses for 2025/2026. You can read it on the SARS website.
How do I register my business for tax with SARS?
Register the company with CIPC, wait for SARS to generate the income tax number, register on eFiling, then add VAT and PAYE/SDL/UIF if you are liable for them.
When must a small business register for VAT?
When taxable supplies exceed R2.3 million in any consecutive 12-month period. Apply within 21 business days of exceeding, or expecting to exceed, the threshold.
What is the difference between SBC tax and Turnover Tax?
SBC rates apply to a company’s taxable income if it meets the section 12E conditions. Turnover Tax is a separate regime for micro businesses with turnover of R2.3 million or less, calculated on turnover rather than profit.
What happens if I file or pay late?
SARS charges interest at 10.25% per annum on late or underpaid tax (from 2 March 2026) and may impose administrative penalties of R250 up to R16 000 a month while a return stays outstanding. Late VAT payments carry a 10% penalty.
Which obligations apply to a small business with employees?
The monthly EMP201 for PAYE, SDL and UIF, the EMP501 reconciliations, and the Compensation Fund return of earnings. SDL applies where annual payroll exceeds R500 000.
Confirm anything specific to your business with SARS or a registered tax practitioner. See business and compliance requirements and company registration requirements.