Tax Tips

[db88]

I'm sure this is a recurring topic on this forum, but are there any tips to reduce your tax bill from your trading and investment profits? I tried to do some research on the internet and as far as I can tell you are able to open a private company, but you won’t be able to benefit from the small business corporation tax rates (as revenue from “investment incomeâ€� is limited to 20% of total). Is this correct? If so, is it even worth going through the trouble to register a private company (as you will still be paying 28% tax and lose a lot of the tax benefits given to individual tax payers?

[THRESHOLD]

And STC (now dividend tax) to get your money out of the company. And statutory fees to CIPRO for the honour; AND audit fees; AND secretarial fees...

[SimonPB]

no audit required if you small, but CGT 66% of rate for company vs. 33% for individual (albeit co is 28% vs. max of 40% for individual) ..

[THRESHOLD]

Y the 08 revision. Too true until you want to raise funds against your portfolio or use it in any way as a form of security.

[THRESHOLD]

And the primary exemptions!

[kwagga]

Who is exempt from Withholdings Tax on Dividends? The dividend is exempt from dividends tax if the beneficial owner is: a trust contemplated in section 37A of the Income Tax Act; Can anyone shed some light on this ?

[kwagga]

The dividend is exempt from dividends tax if the beneficial owner is: • a company which is resident in South Africa; • the Government, provincial government or municipality (of the Republic ; of South Africa) • a public benefit organisation (approved in terms of s30(3) of the Income Tax Act) • a trust contemplated in section 37A of the Income Tax Act; • an institution body or board contemplated in section 10(1)(cA) of the Income Tax Act; • a fund contemplated in section 10(1)(d)(i) or (ii) of the Income Tax Act; • a person contemplated in section 10(1)(t) of the Income Tax Act (CSIR,SANRAL etc); • a shareholder in a registered micro business as defined in the Sixth Schedule to the Income Tax Act to the extent that the aggregate amount of the dividends paid by that registered micro business to its shareholders during the year of assessment in which that dividend is paid does not exceed R200,000 and; • a person that is not a resident and the dividend is a dividend contemplated in paragraph (b) of the definition of “dividend” in section 64D.

[#8]

If you open a private co, can you claim back the VAT on the brokerage.?

[SimonPB]

sure, if you rgister for vat .. but make sure the paper works is worth the saving ..

[THRESHOLD]

Very difficut to register for VAT these days and The VAT Act requires that you be "carrying on a business... Clearly that will lead to trouble when you realise a profit as it will be seen to be an income item.

[THRESHOLD]

Land rehabilitation, restoration etc. DME type stuff.

[partridge]

With the greatest respect to the questioner this is not the right place to be seeking "free " tax or plannning advice - and as regard those supplying answers(?) offering such advice is at best naive but more likely they run the risk of breaching the FAIS Act. Can the forum please not be highjacked by ridiculous stuff like this.

[CHATTYCHAT]

They changed to Dept of Minerals and Resources (DMR)

[THRESHOLD]

Yes - but the act specifies DME - and the change of name brings its own mess with it - and on it goes.

[THRESHOLD]

BUT, if you look carefully, you'll see that there is no "advice" being offered. It's a general discussion. If we don't discuss this sort of thing, what are we going to discuss? Nobody seems to discuss companies or economics or politics. Such efforts re met with a derisive sneer. It's just the odd bit of nonsense about trading. AND that is a repetitive bore.

[stores]

Agree Threshold...I have picked up tips to become more tax efficient the forum. Tax aviodance is legal, which is what is being discussed, and not tax evasion which is illegal.

[Rams]

Agree. Like Simon said, This is a BAR...you can drink anything, say anything...people get all worked up about the lack of serious stuff on the forum...but serious stuff will attract only one or two replies and the "nonsense trading stuff" like we had from Riaan and his Sewerage company attracted the most replies. So the serious stuff is where the work is done and thats the trading platform, the forum is where we come for a drink and some obsceneities!

[db88]

Breaching the FAIS Act... Are you serious? This is a forum where people share their opinion's. I am not lookking for free advise but rather for confirmation that my own research is correct.

[db88]

Breaching the FAIS Act... Are you serious? This is a forum where people share their opinion's. I am not lookking for free advise but rather for confirmation that my own research is correct.

[db88]

Breaching the FAIS Act... Are you serious? This is a forum where people share their opinion's. I am not lookking for free advise but rather for confirmation that my own research is correct.