SMALL BUSINESS CORPORATIONS (SBCs)
S12E
Requirements –
1. Close Corporation (CC) / Co-operation / Private company ((Pty) Ltd) or Personal liability company (Inc.)
2. All shareholders (proprietary interests) = Natural persons
if carried on a trade for < 12 months, the R20 mil
3. Gross income ≤ R20 million
must be apportioned to reflect the # months that the
4. In no time during the YOA, shareholders may NOT have interest in another company, except: entity carried on a trade relative to 12 months
listed company on SA exchange
non-profit company, etc.
share block company
body corporate
venture capital company
portfolio of collective investment scheme in property - REIT
5. May not be a personal service provider (PSP)
Benefits of SBC Not apportionable
6. Not more than 20% of total receipts, accruals & capital gains may be from “investment income” and
income from “personal service”
Capital Allowances
Manufacturing assets = 100% allowance of cost – s12E(1)
“investment income” Non-manufacturing assets (at election) = s11(e) OR 50% / 30% / 20% – s12E(1A)
s12E(4)(c) Moving expenses = equal instalments over remaining years –
s12E(3)
Dividends, foreign dividends, royalties, rental from immovable property, annuities or similar
Proceeds from investment/trading in financial instruments, marketable securities or immovable property
Interest from interest-bearing investments (s24J)
Tax Rates – 2024
“personal service” Taxable income Rate of tax
s12E(4)(d) ≤ R95 750 0% of taxable income
R95 751 – R365 000 7% of taxable income exceeding R95 750
Service in the field of accounting, actuarial science, architecture, auctioneering, auditing, broadcasting, consulting,
draftsmanship, education, engineering, financial service broking, health, information technology, journalism, law, R365 001 – R550 000 R18 848 + 21% of taxable income exceeding R365 000
management, real estate broking, research, sport, surveying, translation, valuation or veterinary science
Performed personally by a person who holds an interest in that company or connected person to any ≥ R550 001 R57 698 + 27% of taxable income exceeding R550 000
person holding an interest
Company, co-op or CC does not employ 3 or more full-time employees throughout YOA Micro businesses and Turnover tax are not in the scope for BEL300…
S12E
Requirements –
1. Close Corporation (CC) / Co-operation / Private company ((Pty) Ltd) or Personal liability company (Inc.)
2. All shareholders (proprietary interests) = Natural persons
if carried on a trade for < 12 months, the R20 mil
3. Gross income ≤ R20 million
must be apportioned to reflect the # months that the
4. In no time during the YOA, shareholders may NOT have interest in another company, except: entity carried on a trade relative to 12 months
listed company on SA exchange
non-profit company, etc.
share block company
body corporate
venture capital company
portfolio of collective investment scheme in property - REIT
5. May not be a personal service provider (PSP)
Benefits of SBC Not apportionable
6. Not more than 20% of total receipts, accruals & capital gains may be from “investment income” and
income from “personal service”
Capital Allowances
Manufacturing assets = 100% allowance of cost – s12E(1)
“investment income” Non-manufacturing assets (at election) = s11(e) OR 50% / 30% / 20% – s12E(1A)
s12E(4)(c) Moving expenses = equal instalments over remaining years –
s12E(3)
Dividends, foreign dividends, royalties, rental from immovable property, annuities or similar
Proceeds from investment/trading in financial instruments, marketable securities or immovable property
Interest from interest-bearing investments (s24J)
Tax Rates – 2024
“personal service” Taxable income Rate of tax
s12E(4)(d) ≤ R95 750 0% of taxable income
R95 751 – R365 000 7% of taxable income exceeding R95 750
Service in the field of accounting, actuarial science, architecture, auctioneering, auditing, broadcasting, consulting,
draftsmanship, education, engineering, financial service broking, health, information technology, journalism, law, R365 001 – R550 000 R18 848 + 21% of taxable income exceeding R365 000
management, real estate broking, research, sport, surveying, translation, valuation or veterinary science
Performed personally by a person who holds an interest in that company or connected person to any ≥ R550 001 R57 698 + 27% of taxable income exceeding R550 000
person holding an interest
Company, co-op or CC does not employ 3 or more full-time employees throughout YOA Micro businesses and Turnover tax are not in the scope for BEL300…
