I recommend checking with a professional, but its very similar, you either pay 40% in your own name or 28% in a company and then another 15% if you pull it out, or 28% and 40% in your own name. (depending on how you get the money out)
I have been investing as a registered cc for 20 years now.I also invested in my personal capacity at the same time-I found advantages eg I set up a provident fund-i also set up health care-paid a salary to myself and claimed alloweable expenses.there are pros and cons but I certainly have not regretted setting up the cc-I also set up a family trust over 20 years ago with my father and despite negative comments about trusts it has worked well for my family.suggest you consult a professional accountant and understand the pros and cons and then make a call-good luck
pty for sure more flexible than trust but u need enough revenue to justify accountant costs -u can have a trust as well-its a way of making donations yearly to put aside money for family and avoid inheritance tax if you can look that far ahead-when i started i was unsure how big my portolio would grow so I chose a cc as it is 'cheaper' to set up and run
CC's are now a thing of the past. Small companies no longer require an auditor - so the same cost as a CC. The only complexity is capturing the dividend stream. Salary structures based on internal return are the most obvious solution.
I understand you can still buy a second hand cc but if small pty not audited then pty seems better.not sure I understand your comment about capturing divs .obviously div tax does not apply but if u make profit then normal company tax is applied -salary is upto how much company can afford I guess.my view would be if you generate enough income and you expect to be doing this for a long time a pty is certainly worth considering.
The advice given on the take out rates and hurdles was the best. Juat start there and se a competent firm of accountants or tax specializing lawyer - especially if you want to go the trust - route. the idiots who given advice on trusts out there are like the bubonic plague- to be avoided. Just remember once you introduce a third party - trust or company - you introduce two things - which are never going to go away. 1. Costs and this is not only a yearly cost- but at least remember that those costs will rise faster than inflation. 2. Secondly, you introduce a target for SARS. And planning on the basis of what you see as existing rules is not necessarily going to be enough. This I say on while having cast an eye over the run- up to where we are - and casting forward a glance into what one could term scenario tax planning in the light of a government which needs money - and a closed world tax system. SO while the Newcastle man is right - don't forget the problems of tax. And remember - we don't make those laws.