How this calculation works
Revenue less allowable expenses gives business profit or loss. The estimate floors combined taxable income at zero, deducts qualifying retirement contributions within the 27.5% and R430 000 limits, then applies individual tax and age rebates.
A worked example
R600 000 revenue less R120 000 allowable expenses gives R480 000 profit. Under age 65 with no other income or deductions, estimated income tax is R92 217.
Assumptions & limitations
- For a South African resident sole proprietor, not a company. Expense deductibility and assessed-loss restrictions need separate review; the tool does not determine employee/contractor status.
- UIF, VAT, provisional payment timing, medical credits and tax already paid are excluded. The full estimated annual liability is not automatically your next provisional payment.
