Results 1 to 2 of 2

Thread: Corporate Tax Cut

  1. #1
    Full Member
    Join Date
    Jul 2008
    Posts
    62
    Thanks
    11
    Thanked 0 Times in 0 Posts

    Corporate Tax Cut

    Hi,

    We have a small animation, visual-effects and game development company (Closed Corporations - three partners, 1/3 each). The turnover is around 800K now and the overhead/operating costs are very low.

    I have read and heard alot about tax cuts/break, but I'm not sure how. The company is doing well and we will likely to have some profit to be shared at the end of this business year.

    I believe we will have to pay 28% corporate tax on profits and then again 10% secondary tax on dividends declared. I'm looking at the most tax efficient way to take the money out of company.

    Are there any existing secrets on cutting the taxes? Keeping fuel slips? Spending more money on entertainment? Buying company car?

    Thanks,
    Anakin

  2. #2
    Junior Member taxlibrary's Avatar
    Join Date
    Dec 2008
    Posts
    12
    Thanks
    0
    Thanked 7 Times in 5 Posts
    hi Anakin

    You can deduct all expenses that are "in the production of" the CC's taxable income and not of a capital nature.

    One thing that you can look at is the tax relief for research and development:
    http://www.acts.co.za/tax/11b_deduct...evelopment.htm

    Regards
    Last edited by taxlibrary; 31-Jul-09 at 11:30 PM.

Similar Threads

  1. Replies: 1
    Last Post: 22-Feb-08, 04:38 PM
  2. Replies: 8
    Last Post: 13-Sep-07, 12:10 AM
  3. Flat tax rates for SA.
    By Dave A in forum General Business Forum
    Replies: 3
    Last Post: 13-Apr-07, 10:25 PM
  4. Managing tax risk
    By Dave A in forum General Regulatory Compliance Forum
    Replies: 0
    Last Post: 30-Jan-07, 09:30 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •