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    Converting an independent business to a company

    Process

    Transferring activity from an independent business to a company requires tax planning. A transfer can be made with an exemption according to section 104 of the ordinance.

    Considerations

    • Corporate tax 23% versus individual rates (up to 50%)
    • Additional tax on dividend (25%-30%)
    • National insurance liability is different
    • Profit retention advantage in the company

    Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.