This guide provides general guidance on the taxation of small businesses such as sole proprietors, partnerships and companies not part of large groups. Some considerations in this guide may, however, apply to any taxpayer. The aim is to consider the typical taxation issues of an average business trading in South Africa.
This guide is not an “official publication” as defined in Section 1 of the Tax Administration Act, 2011. Accordingly, it does not create a practice generally prevailing under Section 5 of that Act, 2011. It should, therefore, not be used as a legal reference.
It is also not a binding general ruling (BGR) under Section 89 of Chapter 7 of the Tax Administration Act, 2011. Should an advance tax ruling 1 or a VAT ruling be required, visit the SARS website at www.sars.gov.za for details of the application process.
The information in this guide concerning income tax relates to:
- Natural persons for the 2026 year of assessment commencing on 01 March 2025 and ending on 28 February 2026;
- Trusts in respect of years of assessment commencing and ending during the period commencing on 01 March 2025 and ending on 28 February 2026; and
- Companies and close corporations with years of assessment ending during the 12 months ending on 31 March 2026.
For income tax purposes, this guide has been updated to include the Tax Administration Laws Amendment Act, 2026, the Taxation Laws Amendment Act, 2026, the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2026, the Revenue Laws Amendment Act, 2025, as well as the Budget Review of 2025.
The guides, and where they can be accessed:
- Taxation in South Africa 2026
- Tax Guide for Small Businesses (2025/2026)