Personal service provider

[derp90]

Can a sole proprietor qualify as a personal service provider? Like a freelancer providing design services mainly to 1 client (80% of income)?

 

[Snyper564]

https://www.sars.gov.za/wp-content/uploads/Legal/Notes/LAPD-IntR-IN-2012-35-Employees-Tax-Personal-Service-Providers-Labour-Brokers.pdf

 

[Tomtomtom]

No, the PSP designation only applies to companies/trusts.

 

[Snyper564]

No, the PSP designation only applies to companies/trusts.

correct

 

[derp90]

If you were to set up a company, would you then pay PSP tax rate plus dividends tax on any money you'd take out?