Turnover Tax vs SBC vs Standard Company Tax 2027 | Du Preez Tax & Bookkeeping Services

Business figures

Annual turnover (gross receipts)

Taxable profit under normal tax rules turnover less allowable expenses — used for the SBC/standard comparison

SBC qualification

This business likely qualifies for SBC rates natural-person shareholders only, gross income ≤ R20m, ≤20% investment/personal-service income

Turnover tax

Result

Turnover tax payable

R 0.00

on gross turnover — no expense deductions

Comparison

Result

Turnover taxR 0.00

SBC income tax (on taxable profit)R 0.00

Standard company tax (27% flat)R 0.00

Cheapest option–

Please note: turnover tax replaces income tax, VAT, provisional tax, CGT, and dividends tax for qualifying micro businesses (turnover ≤ R2.3 million), but you can't deduct expenses against it, so it can cost more than normal tax if your margins are thin. Certain activities (professional services, labour brokers, personal service providers) are excluded from turnover tax regardless of turnover. Please confirm eligibility with us before switching regimes — moving back to normal tax isn't always straightforward.