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TaxTim says: 11 December 2012 at 22:55 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. |
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Shaun says: 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? |
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TaxTim says: 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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