Turnover Tax or SBC Tax

[iFan]

Hi Guys,

Starting a small company, pty ltd, going to be earning and paying my own salary essentially.

Estimating the business to make around 30K per month for now. Want to pay myself 20K

Have done some calculations on various company earnings, and it definitely seems like Turnover tax makes me pay way less tax.

Is it feasible?

Also I will mainly be consulting. Am I still allowed to register for Turnover Tax?

I see a lot of bad things about Turnover Tax, but if you do the figure work, it really does cost less.

Thanks!!

 

[Gtx Gaming]

Register a company and register company for turnover tax.

Don't pay yourself a salary you will be taxed on it. Rather let business just pay for everything. I never pay my self a salary from my side-line business, rather buy business assets which I use for myself and the business.

If business does not make money the business won't even have to even pay tax.

Only problem is that you won't be able to apply for any credit as you won't be earning a salary, but the business can.

 

[ScottulusMaximus]

Register a company and register company for turnover tax.

Don't pay yourself a salary you will be taxed on it. Rather let business just pay for everything.

If business does not make money the business won't even have to even pay tax.

1. Consulting isn't eligible for turnover tax
2. It is illegal to pass off personal expenses to the business.
3. You pay turnover tax whether you make a profit or not.

 

[Gtx Gaming]

1. Consulting isn't eligible for turnover tax
2. It is illegal to pass off personal expenses to the business.
3. You pay turnover tax whether you make a profit or not.

Then I might on SBC tax? For period of AUG 2016 till FEB 2017 the business ran at a loss, when my tax lady submitted it to SARS, it said I don't owe them anything.

The period before that I did pay tax as business did turn a profit.

 

[ScottulusMaximus]

Then I might on SBC tax? For period of AUG 2016 till FEB 2017 the business ran at a loss, when my tax lady submitted it to SARS, it said I don't owe them anything.

The period before that I did pay tax as business did turn a profit.

You must be

 

[JayM]

1. Consulting isn't eligible for turnover tax
2. It is illegal to pass off personal expenses to the business.
3. You pay turnover tax whether you make a profit or not.

Just to add to this, consulting isn't eligible for SBC tax either.

 

[piranha786]

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