Corporate Tax Durban covers company income tax from end to end: the tax computation, the ITR14 return, provisional payments, dividends tax and dealing with SARS when something is queried.
Companies pay 27% of taxable income. Qualifying small business corporations pay considerably less, which is why the computation deserves attention rather than a rubber stamp.
Your company's year end, turnover, whether financial statements are done and whether it may qualify as a small business corporation.
Get Quotes From Accountants in DurbanRates And Who They Apply To
| Taxpayer | Rate |
|---|---|
| Standard company | 27% of taxable income |
| Small business corporation, first R99,000 | 0% |
| Small business corporation, R99,001 to R365,000 | 7% |
| Small business corporation, R365,001 to R550,000 | R18,620 plus 21% |
| Small business corporation, above R550,000 | R57,470 plus 27% |
| Micro business on turnover tax | 0% to 3% of turnover, up to R2.3m |
| Dividends tax | 20%, withheld at source |
| Trusts other than special trusts | 45% |
Small business corporation status has strict tests: gross income under R20 million, only natural persons as shareholders, no shares held in other companies, and limits on investment and personal service income.
The Corporate Tax Year
- First provisional payment. Six months into the year of assessment, end of August for a February year end.
- Second provisional payment. By the last business day of the year of assessment.
- Optional third top-up. Seven months after year end, to limit interest on any shortfall.
- Financial statements. Prepared after year end, and needed before the return can be completed.
- ITR14. Within 12 months of year end.
- CIPC annual return. Separate from SARS, due within 30 business days of the registration anniversary.
Deductions Worth Getting Right
- Wear and tear and section 12E. Qualifying small business corporations write off plant and machinery faster than standard rates.
- Assessed losses. Carried forward, but the set-off is limited to the higher of R1 million or 80% of taxable income.
- Doubtful debts. A specific allowance is available on a prescribed basis, not a general provision.
- Prepaid expenses. Section 23H spreads certain prepayments rather than allowing them upfront.
- Interest on shareholder loans. Watch section 7C on loans to trusts and the limitation rules on connected party interest.
- Learnership allowances and section 12H. Often missed by companies that qualify.
A company tax return cannot be prepared without signed financial statements, so those come first. See Accountants Durban for firms that handle both.
Corporate Tax Durban Prices
Indicative Durban ranges, excluding VAT.
| Service | Indicative range | Notes |
|---|---|---|
| Tax computation and ITR14, small company | R2,500 - R5,500 | Requires signed AFS |
| Tax computation and ITR14, medium company | R5,500 - R12,000 | More schedules and disclosure |
| Group or consolidated returns | R12,000 - R45,000 | Per group, entity count driven |
| IRP6 provisional return | R650 - R2,500 per submission | Two compulsory per year |
| Dividends tax return (DTR01/02) | R1,200 - R4,500 | Per declaration |
| Corporate tax planning review | R8,000 - R35,000 | Once-off, structure dependent |
| SARS verification response | R2,500 - R12,000 | Document volume dependent |
| Objection or appeal | R5,000 - R45,000 | Amount and complexity driven |
| Written tax opinion | R12,000 - R60,000 | For a specific transaction |
Indicative Durban ranges, not a quotation. Prior year assessed losses, group structures, foreign income and unresolved SARS matters all push the fee up.
Send your year end and turnover, and compare quotes from corporate tax practitioners.
Compare Corporate Tax QuotesFrequently Asked Questions
What is the corporate tax rate in South Africa?
27% of taxable income for years of assessment ending on or after 31 March 2023, down from the previous 28%. Qualifying small business corporations are taxed on a lower sliding scale.
When is a company tax return due?
The ITR14 must be submitted within 12 months of the company's financial year end. Provisional payments are due six months into the year and at year end, with an optional third top-up.
What are the small business corporation rates?
For years of assessment ending between 1 April 2026 and 31 March 2027: 0% on the first R99,000 of taxable income, 7% to R365,000, then R18,620 plus 21% to R550,000, then R57,470 plus 27% above that.
Can a dormant company skip its tax return?
No. A dormant company must still file a nil ITR14 every year, plus its CIPC annual return. Not filing triggers administrative penalties even though no tax is owed.
How are dividends taxed?
Dividends tax is withheld at 20% when a dividend is paid to individuals and non-resident shareholders. Dividends paid to South African resident companies are generally exempt.
Related Accounting Services in Durban
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