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When I sold my Australian consulting company, I received two 25% tax discounts on the proceeds, both designed to encourage small business. Those tax discounts
by stevoski 15y ago
When I sold my Australian consulting company, I received two 25% tax discounts on the proceeds, both designed to encourage small business.
Those tax discounts were a surprise to me and didn't encourage me to start the business, nor to sell. A most pleasant surprise, though, as I didn't receive millions for the sale.
- aspelund 15y agoThat sound great. When I sold my part of a startup in Sweden, I got half of it taxed at 30%, and the rest taxed as salary, which is very highly taxed here. Not as nice surprise. Later on I started a new company and put in some of the fully taxed money into that company. When paying employees salaries then the same money was taxed as salary again. No deductions anywhere to be seen. If I would have gotten more money from my exist (I didn't get millions either) the procedure would have been to keep the money within a holding company. Then the taxation wouldn't have been multiple income taxes. But for a small player that really isn't an option, resulting in a truly horrible and counterproductive system.