We can assist you with the legalities concerning your organisational framework and more specifically commercial activities such as, corporations, partnerships, holding companies, non-profits, subsidiaries and limited-liability companies.
Structures are set up in the furtherance of reducing income tax, capital gains tax and estate duty. The benefits of having structures for one’s investments, business property etc. must outweigh the costs of setting up the structures and the ongoing costs.
When we talk about structures, we are referring to the use of companies, trusts and endowments to reduce exposure to income tax, capital gains tax and estate duty. In most cases, company and trust taxes are higher than individual taxes, but the growth of the asset could belong to a trust or company, thereby reducing potential estate duty. Estate duty is payable/leviable at a rate of 20% of assets above R3.5 million. If your assets are below R3.5 million, then structures are possibly not applicable to you, but if your assets exceed R3.5 million, you might be able to reduce estate duty by utilising such structures and should consult with your tax/financial advisor.