How are businesses taxed in South Africa?
Henry Morales
Published Feb 27, 2026
The corporate tax rate in South Africa is a flat rate of 28% for all companies (27% from 1 April 2022). However, trusts (excluding special trusts) in South Africa pay tax at a separate rate of 45%. Additionally, companies are subject to capital gains tax at a rate of 22.4%.
How are profits from a business taxed?
Starting in 2018, corporations pay a flat tax of 21% on all their profits. In contrast, owners of sole proprietorships, partnerships, and LLCs must pay taxes on all business profits at their individual income tax rates, whether they take the profits out of the business or not.
Do you have to pay tax on a money transfer to Australia?
However, all residents of Australia are eligible to pay taxes on money transfers to Australia depending on the amount. In general, transferring an inheritance from overseas is not taxable, but if those funds are put towards an investment, any earnings and income generated from that investment will then be taxed as income tax.
Do you have to pay tax on transferring money from one saving bank account to another?
As transferring money from one saving bank account to another saving bank account does not fall as income it will not be taxed. Depending on mode chose (NEFT,RTGS,IMPS) you might have to pay transaction charges. Our article Basics of Income Tax Return covers types of Incomes in detail.
Do you have to pay taxes on your business income?
This business tax amount from the form is included on the individual owner’s tax return, along with other income and expenses. Owners of pass-through businesses also must pay self-employment tax (Social Security/Medicare tax) on their business income. S corporation owners are an exception; they don’t have to pay self-employment tax. 1
How does a pass through business pay taxes?
The owner pays the taxes if the company being taxed is a pass-through business entity—a partnership, LLC, or S corporation that passes its tax down to its owners. For example, the tax for an LLC would be calculated and the tax would be reported by the corporation if the corporation owned the LLC.
