PROFITS from Joint Venture companies are commonly distributed through dividends.

Of course, the ability of the Joint Venture to pay dividends will depend on its cashflow position. Depending on the circumstances, there may also be other more tax-effective WAYS of realizing part of the value of your investment in the Joint Venture. Where a Joint Venture is structured as a PARTNERSHIP, profits are automatically shared between the partners as specified in the partnership AGREEMENT. The partnership agreement should also specify what cash payments partners can take from the partnership. If there is no separate joint venture ENTITY, there will be no need to ‘take’ profits from the joint venture – the profits will in any case arise within your (or your Joint Venture partner’s) business.

Profits from Joint Venture companies are commonly distributed through dividends.

Of course, the ability of the Joint Venture to pay dividends will depend on its cashflow position. Depending on the circumstances, there may also be other more tax-effective ways of realizing part of the value of your investment in the Joint Venture. Where a Joint Venture is structured as a partnership, profits are automatically shared between the partners as specified in the partnership agreement. The partnership agreement should also specify what cash payments partners can take from the partnership. If there is no separate joint venture entity, there will be no need to ‘take’ profits from the joint venture – the profits will in any case arise within your (or your Joint Venture partner’s) business.