04-14-2010, 06:30 PM
Dear members,
We have a pvt. ltd. company registered with SECP generating 100% revenue from foreign and though it is fully exempt from tax liability. Few days before we had announced dividend to our shareholder ( 2 owners mr & mrs ABC), in this transaction we have paid 10% tax on gross amount of divided. Now i have an assignment from my directors to gather all the drawbacks, if we go to dissolve our company status into a partnership or a sole proprietorship because in case of partnership or sole business we dont have to pay any tax on drawings and the business profit will retain the non-taxable status as revenue is foreign generated.
I hope u understand all the situation now, please suggest me all the perspectives which we should keep in mind to change our corporate status ........... will it beneficial for us or not
We have a pvt. ltd. company registered with SECP generating 100% revenue from foreign and though it is fully exempt from tax liability. Few days before we had announced dividend to our shareholder ( 2 owners mr & mrs ABC), in this transaction we have paid 10% tax on gross amount of divided. Now i have an assignment from my directors to gather all the drawbacks, if we go to dissolve our company status into a partnership or a sole proprietorship because in case of partnership or sole business we dont have to pay any tax on drawings and the business profit will retain the non-taxable status as revenue is foreign generated.
I hope u understand all the situation now, please suggest me all the perspectives which we should keep in mind to change our corporate status ........... will it beneficial for us or not