Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.
Try Tim Now

how much tax will a business pay on r100000 profit an if a salary is paid to me,must I pay tax?

Posted 30 April 2014 under Tax Questions



Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
I will be starting a business soon, I just wanted to know, if the business earns more than R10 0000 profit a year, what will the tax amount be? an if I pay myself a salary from it will I have to pay tax on it?

This entry was posted in Tax Questions and tagged , . Bookmark the permalink.

TaxTimTaxTim says:
1 May 2014 at 15:29

Will you be registering a company or running the business as a sole trader?


Ash says:
1 May 2014 at 15:35

I will be registering it.


TaxTimTaxTim says:
1 May 2014 at 15:38

If the company has only you as an employee then it will be paying 28% tax on profits. However if you are paying yourself a salary then the company can reduce the profits by the salary and therefore the tax. You would pay tax as per the tax rates set out in the 2015 Budget.


Ash says:
1 May 2014 at 17:30

If I use the profits of the company which I pay tax on, for my personal purposes, is it fine? Seeing that tax was paid on it?


TaxTimTaxTim says:
2 May 2014 at 9:32

If you use the profits of the company then you would be declaring a dividend and a further 15% tax must be paid. You cannot just use the profits as the company is a separate legal entity. What is the profit of the company before salaries?


Ash says:
2 May 2014 at 12:00

I'm just trying to figure out how much it will cost if I should start a business, so I'm assuming R100000 profit per annum which is like R8400 profit a month, what I would pay on that?


TaxTimTaxTim says:
2 May 2014 at 16:50

It would be cheaper to run the business in your own name than start an actual company based on that turnover and profit. R100 000 per annum in your own name would amount to about R5 000 in tax.


Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →