My salon rents out chairs to independent stylists — how does that setup actually affect the tax picture?
I run a salon and rent chairs to stylists working for themselves — how does that affect my own tax position?
The chair-rental arrangement is common in beauty salons — the stylist or technician holds her own trade licence and invoices her clients directly, while the salon simply charges her rent for the use of the space and equipment. In that setup, the salon's revenue is only the rent, which carries 5% VAT as a commercial space-rental service, while corporate tax on the stylist's own income remains her sole responsibility as a separate entity.
A common mistake is the salon not documenting this arrangement with a clear rental agreement, or clients still paying the salon's own cashier instead of the stylist directly — in that case, any review by the Federal Tax Authority or the corporate tax authority may treat the entire revenue as the salon's own, regardless of the original intent. RASEEKH helps you document this relationship correctly from the start, whether you're the salon owner or the independent stylist, so each party carries only their own, correctly assigned tax obligation.