what to do with company profits?
what to do with company profits?
So you have an Oy company. You got sales and use part of that to pay your own salaries. You got dozens of thousands left as profit. What should you do with it to be most tax-efficient way?
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Re: what to do with company profits?
You should consult a corporate tax lawyer. You must understand that the question is akin to "what should I do with the money I have left over from my monthly salary after living expenses".
Re: what to do with company profits?
If I withdraw all of my profits for myself, does that mean that I have to first pay 20% corporate tax and then 30% on capital income?
In other words, let's say I have 25000e in profit. If I decide to withdraw all of them (to pay dividends for myself), then I will receive 14000e in my account? (25000*80%*70%)
In other words, let's say I have 25000e in profit. If I decide to withdraw all of them (to pay dividends for myself), then I will receive 14000e in my account? (25000*80%*70%)
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- Posts: 1438
- Joined: Sun Nov 08, 2009 8:52 pm
Re: what to do with company profits?
Dividend taxation depends on the financial situation of the company (how much of its net assets are paid out). A private person is also taxed for the capital gains one makes. You really want to dig deeper into the whole company (and personal) taxation to get the full picture, take a course, hire a consultant, otherwise you put yourself at risk to make costly mistakes. There are a lot nuances that determine the most optimal approach in any given situation.nokiassa wrote: ↑Sun Feb 06, 2022 8:19 pmIf I withdraw all of my profits for myself, does that mean that I have to first pay 20% corporate tax and then 30% on capital income?
In other words, let's say I have 25000e in profit. If I decide to withdraw all of them (to pay dividends for myself), then I will receive 14000e in my account? (25000*80%*70%)