With over 12 years of experience we help companies reach their financial and accounting goals. Abishel Accounting is a values-driven consulting and accounting firm.

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Do I Taxed for Leaving My Profit in The Business?

No. If the company’s annual accounts are done and the profit is seen to be still in the business as cash in the bank, no additional taxes will be paid on it in the business.
Personal taxes will apply when you withdraw those profits. It will be called a dividend. Dividends are liable to Income Tax.
So it is considered being tax wise to trust the business bank account and leave profits in it and withdraw only when you need them.

 

Author

Fungayi Mukosera