I need help with declaring income from admob. I've been developing apps and have recently been receiving a good income stream from admob, paid to me via PayPal. Would it be better to register a company? Or should I continue receiving the money in a personal capacity?
Depending on how much income you receive would determine whether you should register a company or not. Companies are taxed at 28% whereas the highest individual rate is 40%. If you are earning more than about R300 000 taxable income for the year, basically profit then it would make sense to register a company as the lower tax rate could be beneficial to you. However there are administration issues such as company registrations, annual returns, possible audits or independent reviews with running a company so these need to be considered as well.
Shaunsays: 12 December 2012 at 7:38
My basic salary is more than R300k. And so far this year I have made more than R7000 with admob. What would be the best to do regarding this extra income?
TaxTimsays: 12 December 2012 at 13:20
Comparatively the R7 000 income is a small amount and the hassle of registering and maintaining a company for this amount would lead me to suggest maintaining it in your personal name for now.
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