2min chapter

Dev Raga Personal Finance cover image

227 tax time Q&A with an accountant

Dev Raga Personal Finance

CHAPTER

Do the Pesi Rules Really Impact Your Taxes?

There are a number of tests that you go through to determine whether pesi rules do come into play. The income for tax purposes is actually re routed back to your personal tax return. So, yo, you do get taxed on that income at your marginal rates. You wouldn't be able to apply for 25 % flat tax rate from the company. But if one of the most important things to you is practitioner, is asset protection, and you want to separate your personal assets and mitigate the risk as much as possible then, you know, you can own, you can establish it company yes, you can.

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