FAQ Blog Calculators Students Logbook Contact
Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


What is better for tax - a company or partnership?

Posted 6 August 2013

Considering a business with a taxable income of R200000. Will it be best to keep it as a partnership or register it as a company? The company is a normal company and not a small business corporation since one of the directors is also involved in another company. At what income will it be better to switch over to a company instead of partnership when it comes to taxation?

TaxTim TaxTim says:
7 August 2013 at 18:33

A partnership is taxed in the hands of the partner separately, so when the profit is determined it is divided by the number of partners and added to their income and taxed according to the SARS tax rates 2014. Companies are taxed at 28% and then dividends a further 15% so on R200 000 income it is best to keep in a partnership.

This entry was posted in Tax Q&A and tagged . Bookmark the permalink.



Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.