3 Reasons to use a company for your business

3 Reasons to use a company for your business - South Africa 2018

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6 жыл бұрын

Having children can be amazing, but also expensive... For tips on how to save a bit of money on children related expenses, please watch: "Costs of children and budget tips - South Africa 2019"
• Costs of children and ... -~-
Why should you trade through a company instead of your own name? Here I give 3 reasons to answer that question.
I am Jacques P. Taljaard (BAP(SA)) (GTP(SA)), an accountant and tax practitioner in South Africa.
There's very little information available to the general public of South Africa that assists new entrepreneurs in setting up a business. With this channel I aim to change that.
Get in contact: www.pretera.co.za
#WhyZAisCool #3ReasonsWhy #Companies #SouthAfrica #howtorunyourbusiness
Disclaimer Nothing in this channel can be considered "advice" in any form, and neither Jacques P, Taljaard nor Pretera Accounting Services can be held liable for any claim resulting from the information in this video. Since circumstances often differ vastly, should you need advice we recommend getting in touch with a professional service provider.

Пікірлер: 29

@BAD-SHEEP-INFLUENCERS 3 жыл бұрын

Dankie Jacques

@haydxn6765 2 жыл бұрын

I love this, very informative.

@gogolinda7299 3 жыл бұрын

Thank you

@nomfundisogumede2929 2 жыл бұрын

Very informative 👍

@thabojohannessema3028 4 жыл бұрын

Thank you my brother for the info.

@JJTAcc 4 жыл бұрын

You are most welcome. Thank you for watching!

@lynitakin2742 8 ай бұрын

Thank you for this valued information Jacques, but really, the background music must be removed or the volume turned down if you want to keep the music. I feel that your information is so important that we can do without the interference of the music. Keep up the good work. Good teacher!

@willoday 4 жыл бұрын

Nice one

@JJTAcc 3 жыл бұрын

Thanks 🔥

@lebohangapril2594 2 жыл бұрын

"Executive Coffee Drinker" 🤣🤣🤣🤣, I love your videos they are very informative 👍🏾

@JJTAcc Жыл бұрын

Glad you like them! And thanks for watching!

@gogolinda7299 3 жыл бұрын

That was really informative..... :)

@elshubi52 3 жыл бұрын

Nice video, if you're still active please can you advise how to draw money out of the company? If I pay a salary to myself I have to be taxed individually or can I declar everything as dividend to me and not pay tax

@JJTAcc 2 жыл бұрын

Hi there OK, firstly, sorry for not responding sooner. Secondly, there are 3 main ways in which a shareholder/director can withdraw money from a company. 1. Draw a salary. This is subject to PAYE and SDL (and if the company is registered for UIF, then UIF as well). Usually the main method of withdrawals. 2. Dividend. This is admin intensive, requires 20% dividends tax to be paid to SARS on every dividend paid out, as well as a declaration to SARS with every payment. 3. Interest on a shareholder's loan. This will be subject to Income Tax in the director's personal income. If you want to chat more about this, feel free to get in touch.

@mofokengmphowalter8647 Жыл бұрын

Thnx for in. The background music is a bit too high. Friendly!!!

@JJTAcc Жыл бұрын

Noted

@MrsDyarvane 2 жыл бұрын

Hey Jacques , nice video, does renting property through your business also help with taxes ?

@JJTAcc 2 жыл бұрын

Hey Winnie It depends on the property being rented, and the purpose for the rental. If it's a business premises, it's easier to get the deduction from SARS. But if it's residential, say for one of the directors, it makes more admin (meaning more costs) for only a slight deduction in the taxes payable, if at all. My advice is to put business expenses through the business, and keep private expenses separate.

@karenbayley-mentor-busines6511 Жыл бұрын

Hello. I am a business consultant and have a Pty Ltd. Is it better to pay myself reimbursive travel per kilometer travelled or to pay myself a travel allowance from a tax perspective please?

@JJTAcc Жыл бұрын

Hi Karen. My apologies, I noticed I haven't responded to your query yet. It would really depend on your vehicle and travel, but it seems to us that the most tax efficient way to treat travel activities is with a travel allowance and a logbook, and not reimburse expenses.

@sbu_dibay5019 14 күн бұрын

Why not LLC?

@JJTAcc 9 күн бұрын

Because LLC does not exist in South Africa. Most people know of LLC's because of Rich Dad Poor Dad from Robert Kiyosaki. He's an American. His advice is predominantly for Americans, though a lot can be carried over to other countries. In South Africa we have: Public Companies (Ltd) Private Companies (PTY Ltd) Close Corporations (CC) (cannot create new ones, only those who are in existence continue) Personal Liability Companies (Inc) Non-Profit Companies (NPC) Special Purpose entities - which are usually a PTY with limited scope in the MOI. Partnerships Sole Proprietors Joint Ventures Trusts This video's intention was to inform the public of the most common and widely applicable option for most businesses. Unless I forget one, that's about it.

@ilzebezuidenhout9810 Ай бұрын

dont you end up paying more, because your paying 28% business tax + 45% personal income tax?

@JJTAcc Ай бұрын

This is an excellent question. The answer is: No, you don't pay double tax on salaries. How it works is that the "salary" paid to the director is not taxed at the corporate tax rate which is now 27% (it changed from 1 April 2022). This is considered an allowable deduction from the company. Therefore it is either the 27% corporate tax rate, or the applicable tax rate on the sliding scales. However, if you are declaring a DIVIDEND, then yes there will be double tax. Dividends are paid out of profit after tax (so you already paid the 27% tax), and then there is the dividends tax applicable on the amount. This means you effectively pay 47% on the amount received. If you're unsure, please look into my video "How to calculate income tax - South Africa 2018" to see how an individual's tax is calculated through the use of the sliding scales. The actual sliding scale figures has changed, but the principle remains the same. -Jacques

@ilzebezuidenhout9810 Ай бұрын

@@JJTAcc that makes a lot of sense, thank you very much for the clear explanation. So in essence, if you're earning above R2m a year as a salary, there is now way to escape paying 45/47% to tax, because both the salary and the dividend amount to that percentage. That is so crazy to me because America's highest tax percentage is 37%

@JJTAcc Ай бұрын

This is where things like Retirement Annuities, endowments and the like comes in. Also, the effective tax rate on a R2million income is closer to 35% than the tax bracket 46%.

@Shack01 Жыл бұрын

@Pretera Accounting Services thanks for the advice, just registered mine couple weeks ago and need some advice how can I reach you?

@JJTAcc Жыл бұрын

Hey Shack01. Sorry, I took a bit of leave some time ago. Please hit us up through jjtacc.co.za/quote-request/ or jjtacc.co.za/contact/ Yes, JJT. As per my latest video, Pretera has merged with JJT. Please refer to this channel message when making contact so we know it's you?

@Shack01 Жыл бұрын

@@JJTAcc will do that thank you, hoping you had a good time off ☺️!