Page 22 - Profmark Tax Guide 2025 Digital

COMPANIES NORMAL TAXATION

Resident companies, non-resident companies/branch profits and personal
service providers

For years of assessment ending: Tax rate
Before 31 March 2023 28%
From 31 March 2023 27%

Assessed losses of companies
The balance of assessed loss of a company, carried forward from a previous
year of assessment, to be set-off against trading income of a current year of
assessment, will be limited to the greater of:
■ R1 million, and
■ 80% of taxable income before taking into account any previous assessed
loss�
The above limitation does not apply to companies in liquidation or deregistration�
Combined tax rate of resident company (as a percentage)
2024 2025 2026
Taxable income 100�00 100�00 100�00
Less: Normal tax 27�00 27�00 27�00
Available for distribution 73�00 73�00 73�00
Less: Dividend 73�00 73�00 73�00
Less: Dividends tax 14�60 14�60 14�60
Total tax 41�60 41�60 41�60
Combined rate 41�60 41�60 41�60
Note: Dividends Tax is the liability of the shareholder, while the normal tax is a
company liability�

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