Incorporation

Are you running a profitable business and suffering high marginal tax rates? Incorporate your business and leave the profits in the company taxed at the moderate company tax rate of 25%.

The 25% corporate tax rate applies where your annual aggregated turnover is below $50 million and your passive income (rents, interests, dividends, etc) is no more than 80% of your assessable income.

The Personal Services Income rules might attribute the income of the company to you if it provides personal services and does not meet the required results, 80%, unrelated clients, business premises and/or employment tests.

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