Tax on Dividends
By Marc Sevitz · Updated
I have a small business on the side line where my wife and I are 50/50 owners of the company. I have a job but she does not. Is it best to only declare dividends to her?
How is the company taxed? Is it a registered as a micro business for turnover tax or a Small Business Corporation?
Or is it taxed at normal corporate rates?
Or is it taxed at normal corporate rates?
It is registered as a micro business for turnover tax.
It is registered as a micro business for turnover tax.
Yes, it is best to take dividends - the first R200,000 for the year will be exempt from dividends tax in the micro-business (thereafter will be subject to dividends tax at 15%) and will also be classified as exempt dividend income in her personal capacity.
Thank you very much.
Only a pleasure!