Small Business Corporation (SBC) tax status gives a qualifying company access to a graduated, lower rate table on its taxable income, instead of the flat standard corporate income tax rate.
What it means
Qualification depends on criteria like shareholder composition (only natural persons), turnover limits, and the type of income earned - SBC status is not available to businesses earning mainly investment or personal-service income.
Where it fits in
Unlike turnover tax, SBC tax still requires a full ITR14 computing taxable income - it changes the rate table applied to that income, not the method of calculating it.
Key rules
- Available to qualifying companies with only natural-person shareholders.
- Applies a graduated rate table lower than the standard corporate rate.
- Still requires computing taxable income via the normal ITR14 process.
- Excludes businesses earning mainly personal-service or investment income.
