A Small Business Corporation (SBC) is a specific type of company that meets certain requirements and qualifies for additional tax incentives like a reduced corporate tax rate. To register as a SBC, a company must already exist. A Micro Business is a business with a qualifying turnover of no more than R1 million per annum. They can elect to use a simplified turnover tax system which replaces income tax, VAT (if the business chooses not to be registered for VAT), CGT, STC and dividends tax. This offers a simple way for very small businesses to pay tax, and is an elective system.