Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get SARS Tax Dates and Deadlines in your Inbox
 

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

What is better for tax - a company or partnership?

Posted 6 August 2013 under Tax Questions

Let TaxTim
help you
submit your
Tax returns!




TaxTim will help you:

  • Do Your Tax Return Easily
  • Avoid penalties
  • Maximise your refund
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS
in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
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?

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

TaxTimTaxTim 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.


Get SARS Tax Dates and Deadlines in your Inbox
 

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 →

Let TaxTim
help you
submit your
Tax returns!




TaxTim will help you:

  • Do Your Tax Return Easily
  • Avoid penalties
  • Maximise your refund
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS
in just a few clicks!

Get started