+- Accountancy Forum (https://www.accountancy.com.pk/forum)
+-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4)
+--- Forum: Tax (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=8)
+--- Thread: Tax on private companies (/showthread.php?tid=811)
Tax on private companies - AIM - 05-01-2004
Are there any tax benefits on incorporating a business?
The tax on companies seems to be 43%, while the highest rax on individuals is 35%.
Including other costs for companies such as fees, audits, documentations etc, why would anyone want to incorporate their business?
- massood akhter - 05-06-2004
AOA
I do agree with you, but remember a company has greater authenticity than any individual or aop have, further people or most concious to deal with individual and aop on the other hand companies have great potential to expand their business beacause people want to engage their business relations with companies as compared to individuals and aop.
massood ar.
- AIM - 05-06-2004
AOA
For large business, incorporation could be worth. But for most of the business, incorporation seems tax inefficient.
Also, the dividends I believe are taxed further in the hands of the shareholders?
On this article it says public companies are taxed at 35%. And since public companies dont have to be listed, I guess most business should incorporate as public company. Or are there other issues with public incorporation?
Thanks
- The Legend Killer - 05-06-2004
There are numerous befits accoiciated with companies as compared with a sole trader. AHHH it just cant be compared.
Can u dig it SUcka
- jbladeus - 05-06-2004
Banks also set a cap on the amount of financing they offer to individuals/partnerships. Incorporation reduces the risk in the eyes of the banks, hence they can offer larger amounts for financing.
________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!