How are the taxation systems different for LLPs and Private Limited Companies?
LLPs are taxed like partnerships, meaning the profits are taxed at the partner level, and there is no corporate tax. Partners pay tax based on their individual income tax slabs. In contrast, Private Limited Companies are subject to corporate tax on their profits, and shareholders may face double taxation on dividends distributed. Also Read- https://www.companiesnext.com/blog/llp-vs-private-limited-company-a-comparative-analysis-for-business-owners
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The taxation systems for LLPs and Private Limited Companies differ mainly in their tax rates and treatment of profits. LLPs are taxed at a flat 30% on profits, with no tax on distributed profits, while Private Limited Companies are subject to corporate tax (22%-30%) and dividends are taxed in the hands of shareholders. LLPs have simpler tax structures, whereas companies can access more deductions and exemptions, but with additional tax obligations.https://mytaxdaily.au/hecs-repayment-calculator/