I'm moving back to SA in September, and the Irish company I've been working for wants to keep me on as a daily-rate contractor.
Their policies require me to set up a company that invoices them monthly.
I now need to make a decision as to the type of company to set up: Will a sole-proprietor or a Pty be most beneficial (tax-wise) for this scenario?
I'll be working as a software engineer, working from home, so my running costs should be low (I hope!):
- rent(?) (extra room required for an office)
- basic office supplies
- Am I right in saying that if trading as a sole-proprietor, then my entire invoice amount will be taxed at the normal personal income tax rate?
- Are there any other taxes to consider as a sole trader?
- Will I be able to claim back the above expenses if acting as a sole-trader?
- If I start up a Pty, I understand I can either draw a salary OR pay myself dividends? Is this correct? Does the compay income determine which of these is best?
Any advice would be greatly appreciated -- my tax knowledge is (obviously) VERY limited and I'm struggling to get any concise info from the web!