Tax Relief for Franchisees
Whichfranchise shares the following tax relief advice to franchisees after finance minister Pravin Gordhan announced an increase in the top marginal rate of tax by 4%. There are legitimate ways for franchisees and small business owners to reduce taxable income.
The increase takes the marginal tax rate for people earning in excess of R1.5 million a year to 45%. Only 75,000 taxpayers declare an income of R1.5 million a year.That may include some franchise owners. Whichfranchise discuss the following two ways in which franchisees and small business owners can find relief from the top marginal tax increase:
- Rather take dividend income than personal income.
- Split your business and turnover.
(Read the full article for more details.)
The top tax rate is also not likely to fall anytime soon, and given there were only 75,000 taxpayers in this bracket in 2015, the tax hike is likely to raise around R4.4 billion.