How to Calculate Taxable Income for your Business Jan 2 20Many business owners dont even know corporate income tax rates, business tax deductions, or what tax cuts theyre eligible for. Using this deduction, that means that a business with a taxable income of 100only has to pay taxes on 80of that amount. Above R 550- R 59of taxable income above R 55000. Here are little known ways to reduce your small business taxes to keep more of your money.
Many small business owners use a sole proprietorship which allows them to report all of their business income and expenses on a Schedule C attachment to their personal income tax return. The offset is worked out on the proportion of tax payable on your business income. Estimated taxes are due quarterly: April 1 July 1 October 1 and January of the following year.
Many small business owners must pay estimated taxes because they donapost earn a salary, so no taxes are withheld from their income or self-employment.
Every small business owner should understand these five important things that can affect the businesss income taxes and overall tax situation.