Hello fellow members,

I was wondering how the profits and more especially tax works on holding type companies.

e.g. you have five companies C1, C2, C3, C4 & C5. You then have the holding company H1 which owns C1 - C5.

If C1 to C5 each makes R100 in profit. Does the profits get taxed in each company individually or on a holding company level in this example H1.

If each company gets taxed individually and you move profits to the holding company H1 ... does it get taxed again or it is exempt?

Interesting to know as this would I guess determine if you would rather keep C1 to C5 as divisions of H1 instead... which will possibly create other complexities \ risk having all the divisions as 1 company.

Love to hear from you