Africa · Tax guide

South Africa

South Africa taxes companies at 27%, with progressive rates for small business corporations and a turnover tax for micro businesses, charges VAT at 15% — compulsory from R2,300,000 of supplies since April 2026 — and applies the global minimum tax. Taxes are administered by the South African Revenue Service (SARS).

Updated 1 October 2026 · 9 of 10 figures checked against official sources

Check your obligations

At a glance

Corporate income tax
27%

Progressive rates for small business corporations

VAT
15%

Compulsory above R2,300,000

Turnover tax
R2,300,000

Turnover limit for micro businesses

Dividends tax
20%

Withheld by the company

Withholding on interest and royalties
15%

Paid to non-residents

Global minimum tax
15%

Large multinational groups

Corporate income tax

Companies pay 27%. Small business corporations with gross income up to R20,000,000 pay progressive rates instead, and micro businesses with turnover up to R2,300,000 can choose the turnover tax. Companies make two provisional tax payments, plus an optional third, and file the ITR14 within twelve months of the year-end.

VAT

VAT is charged at 15%. Since 1 April 2026, registration is compulsory once taxable supplies exceed R2,300,000 in twelve months, and voluntary above R120,000. Returns are filed every two months, or monthly for larger vendors. Most financial services and residential rent are exempt.

Employers

Employers withhold PAYE, pay unemployment insurance (UIF) contributions and the skills development levy, and file the EMP201 by the 7th of each month with twice-yearly reconciliations.

Dividends and payments abroad

  • Dividends tax: 20%, withheld by the paying company, reduced by treaty for non-residents.
  • Interest paid to non-residents: 15%.
  • Royalties paid to non-residents: 15%.

Transfer pricing and the global minimum tax

Cross-border related-party transactions must be at arm's length, with master and local files for larger groups. Large multinational groups are subject to South Africa's income inclusion rule and domestic minimum top-up tax at 15%.

Key dates

  • By the 7th of each monthPayroll return (EMP201)
  • Every two months, by the 25thVAT return (VAT201)
  • Six months into the year and at year-endProvisional tax payments
  • Within twelve months of the year-endCompany tax return (ITR14)

Figures and sources

10 figures
  • Corporate income tax rate27%
    Income Tax Act 58 of 1962
    Checked against the official source
  • VAT rate15%
    Value-Added Tax Act 89 of 1991 · s.7
    Checked against the official source
  • Taxable supplies in 12 months above which VAT registration is compulsoryR2,300,000
    Value-Added Tax Act 89 of 1991 · s.23
    Checked against the official source
  • Turnover limit for the turnover tax regime for micro businessesR2,300,000
    Income Tax Act, Sixth Schedule
    Checked against the official source
  • Dividends tax20%
    Income Tax Act, s.64E · Income Tax Act s.64E
    Checked against the official source
  • Withholding on interest paid to non-residents15%
    Income Tax Act, s.50B · Income Tax Act s.50B
    Checked against the official source
  • Global minimum tax rate15%
    Global Minimum Tax Act 46 of 2024 · Global Minimum Tax Act 46 of 2024
    Checked against the official source
  • Gross income limit for small business corporation ratesR20,000,000
    Income Tax Act, s.12E · Income Tax Act s.12E(4)
    Checked against the official source
  • Taxable supplies in 12 months above which voluntary VAT registration is allowedR120,000
    SARS Budget 2026 FAQ
    Under professional review
  • Withholding on royalties paid to non-residents15%
    Income Tax Act, s.49B · Income Tax Act s.49B
    Checked against the official source

Indicative only. This assessment is a high-level overview of tax obligations in South Africa based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in South Africa (a registered tax practitioner) before making compliance decisions.