549 Jacqualine Dr

Garsfontein, Pretoria

+2712 348 0000

Get in Touch

Mon - Fri: 9:00 - 17:00

Come in for a visit

INCOME TAX: COMPANIES CLOSE CORPORATIONS TRUSTS & SOLE PROPRIETORSHIP

A company, Close Corporation or business trust is a separate tax entity for income tax purposes.

Partnerships and Sole Proprietorships are not. Tax will be paid by the partners or sole proprietor. The latter has several implications, namely:

  • For tax purposes close corporations are treated like companies.
  • Companies pay tax at a flat rate of 28%.

Sole proprietors pay tax at the rates applicable to natural persons.

The applicable tax rate of a partner will depend on whether he is a natural person or not.

Trusts are taxed at a flat rate of 40%

A close corporation and company’s tax year coincides with its financial year. The tax year end for a partner who is a natural person, a trust and a sole proprietor is the end of February.

i. The contents of this article is intended to provide a general overview to the subject matter and is not exhaustive. Specialist advice must be sought about your specific circumstances.

ii. Compiled with the assistance of LEXISNEXIS FORMS AND PRECEDENTS – 26 February 2019.

Facebook
Twitter
LinkedIn
Pinterest
Email

Legal Attorneys

We strive to achieve results that exceed expectations 

Recent News

Subscribe To Newsletter

Get In Touch

We're available to answer your questions.

(012) 348-0000
× How can I help you?