2d • General discussion
Salary vs Dividend Decision
Entrepreneurs constantly face this decision: take salary or dividend?
Salary creates deduction for company, but higher personal tax.
Dividend doesn't reduce company profit, but lower personal tax rate.
Optimal mix depends on company profit level, personal tax slab, social security considerations, cash flow needs.
Different jurisdictions create different optimal mixes. There's no universal answer—only situation-specific optimization.
What's your current salary-dividend split rationale?
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Salary vs Dividend Decision
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