Domestic

Local entities are subject to an income tax rate of 30 percent for the fiscal year 2020 and 25 percent as of the fiscal year 2021.

In general, local individuals are taxed at a progressive tax rate that goes from 5 percent to 35 percent, except for earnings with a fixed tax rate. Those are the following:

• For local individuals, the transfer of sovereign bonds or any title is taxed at a 5-percent income tax rate if the title is issued in Argentine pesos, or 15-percent income tax rate if a share of a corporation is transferred, or if the title or sovereign bond is issued in Argentine pesos with an adjustment clause or in foreign currency except an exemption results applicable.
• The transfer of real estate by a local individual is taxed at a rate of 1 percent of income tax.  

Foreign

In general, non-resident entities and individuals are taxed at an income tax rate of 35 percent applied on the presumption of taxable income with effective tax rates of 12.5 percent up to 31.5 percent (see Taxable Incomes). Some concepts are not taxed at the general 35-percent tax rate and are taxed to a specific tax rate.

• Transfer of sovereign bonds or any title (public or private) is taxed at a 5-percent income tax rate if the title is issued in Argentine pesos, or 15-percent income tax rate if the title is issued in Argentine pesos with adjustment clause, or in foreign currency except an exemption results applicable. The transfer of shares of a local corporation is taxed at a 15-percent income tax rate. This assumes that the foreign beneficiary is in a jurisdiction considered as cooperative for tax purposes. 
• Dividends paid to a non-resident individual or entity are taxed at a 7-percent tax rate for the fiscal year 2020 and 13 percent as of the fiscal year 2021.
• The applicable tax rates can be lower if a double taxation treaty is applicable.

Both resident companies and non-resident companies (with Australian-sourced income) are subject to income tax at the company tax rate of 30 percent, unless they qualify for a lower rate (25 percent for the 2021-22 income year and later income years) by satisfying specific requirements (ie, having an aggregated turnover of less than AUD50 million and satisfying an active income test).

Due to the qualification of corporations as independent tax subjects, a distinction must always be made between tax ramifications at the level of the company and those at the shareholder level. Profits of corporate entities are taxed at the company level at a flat rate of 25 percent corporate income tax (Körperschaftsteuer). Payments where the recipient is not disclosed (Empfängerbenennung) may attract a 25 percent surcharge and are not tax deductible.

The planned tax reform for 2021 includes a reduction in wage and income tax rates. Details of the relief for the economy have not yet been specified. Measures can be expected, such as a reduction in corporation tax from 25 percent to 21 percent over the course of several years.

Resident companies are subject to a standard corporate income tax rate of 25 percent. The first income band of EUR100,000 of small companies is subject to a lower rate of 20 percent, provided that certain conditions are met.

See Taxable income.

The federal general corporate tax rate for 2022 is 15 percent on general active business income, and the combined federal and provincial corporate tax rates for 2022 range from 23 percent to 31 percent depending on the provinces in which the permanent establishments of a corporate taxpayer are located.

The Chilean Income Tax Regime is structured as an integrated system in which corporate income tax paid by companies could be credited against the final taxes payable by shareholders or equity holders.

Corporate income tax is paid by the entity on its income and is payable on an accrued basis. The tax rate applicable to companies is 27 percent. Shareholders or equity holders must pay final taxes on effective distributions. In this case, shareholders or equity holders are entitled to credit, in general, 65 percent of corporate income tax paid by the company against final taxes according to the partially integrated regime. Nevertheless, foreign investors domiciled in a country with a double taxation treaty in force with Chile are entitled to credit against final taxes the total amount of the corporate income tax paid by the entity. In this regard, distributions to foreign investors are taxed at 35 percent and the corporate income tax paid by the company is fully creditable. Therefore, the final tax burden to foreign investors in this situation is 35 percent.

There is an alternative tax regime for small and medium companies with annual income below USD2.6 million. In this regime, the corporate income tax rate is 25 percent and the owners pay final tax on effective distributions.  In this regime corporate income tax is fully creditable against final taxes.

However, due the Covid-19 pandemic effects, the tax rate has been temporarily reduced to 10 percent for years 2020, 2021 and 2022.

Personal tax

Individuals domiciled or resident in Chile must pay personal tax (Impuesto Global Complementario) on their total income obtained during a year (dividends, interests, fees, among others). Personal tax has a progressive rate ranging from 0 to 40 percent.

Value-added tax

Value-added tax (VAT) applies to sales of tangible goods. Likewise, certain types of services related to the industry, commerce, mining, extractive activities, insurance, banking, telecommunications, publicity, hospitals, laboratories and entertainment, digital services, among others, are subject to VAT at a rate of 19 percent

In general, Chilean VAT law contains minimal exemptions.

Moreover, from January 1, 2023, all services except for the health, education and transportation sectors, and for all taxpayers who issue fee receipts as individuals, will be subject to VAT.

The standard enterprise income tax rate is 25 percent, with a few preferential tax rates applicable to qualified enterprises.

The standard withholding income tax rate for non-resident enterprises is 10 percent, which may be reduced by applicable tax treaties.

Corporate Income Tax Rate is 35 percent as of 2022. Financial institutions that report a taxable income exceeding 120,000 UVT (in 2022, COP4,598,484,000) are subject to a special rate of 38 percent from 2022 to 2025.

The corporate income tax rate is 20 percent.

The Finance Act for 2018 provided for a progressive reduction of corporation tax rates to 28 percent on January 1, 2020, applicable from the first euro, 26.5 percent on January 1, 2021 and 25 percent as from January 1, 2022. Graduated income tax rates start at 15 percent with a top rate of 25.83 percent in 2022 (including a 3.3-percent additional contribution).

The corporate income tax rate is 15 percent plus a 5.50-percent solidarity surcharge levied on the corporate income tax (ie, 15.825 percent including the solidary surcharge).

The trade tax rate, which is levied by municipalities, varies, but in practice averages 14 percent to 17 percent of taxable income.

Trade tax is based on taxable income as calculated for corporate income tax purposes. However, several income adjustments apply.

Under the 2-tiered profits tax rate regime (effective from April 1, 2018), the profits tax rate for the first HKD2 million of profits of corporations will be lowered to 8.25 percent; profits above that amount will continue to be subject to the normal tax rate of 16.5 percent. The said rates apply on all assessable income with only a few exceptions. The most significant one is the offshore fund profits tax exemption, which exempts most profit of offshore funds carrying on business in Hong Kong. Partial rate exemption (ie, 8.25 percent) applies to items of income such as income from qualifying debt instruments issued in Hong Kong or the onshore business income of professional reinsurance companies. In addition, qualifying corporate treasury centers may enjoy a 50 percent concession (ie, 8.25 percent) on the prevailing rate of normal Hong Kong profits tax (ie, 16.5 percent) on the qualifying profits.

The corporate income tax is levied at a flat rate of 9 percent.

Local business tax is payable at a maximum of 2 percent on adjusted total trading turnover; it is deductible for corporate income tax purposes.

Income tax rates applicable to an individual taxpayer range from a rate of 0 percent to 30 percent. No income tax is payable if the income of the individual taxpayer is below INR250,000. A tax of 5 percent is payable if the income of the individual taxpayer is between INR250,000 and INR500,000 , a tax of 20 percent is payable if the income of the individual taxpayer is between INR500,000 and INR1 million and a tax of 30 percent is payable if the income of the individual taxpayer exceeds INR 1 million. The income tax rate for domestic companies is 25 percent if turnover or gross receipt of the company does not exceed INR4 billion in the financial year 2020-21. A surcharge of 7 percent is payable if the income of the domestic company exceeds INR10 million but does not exceed INR100 million. A surcharge of 12 percent is payable if the income of the domestic company exceeds INR100 million. Over and above the income tax and surcharge, health and education cess is payable at the rate of 4 percent of the income tax and surcharge by all taxpayers.

Domestic companies also have an option to pay income tax at a base rate of 22 percent for the financial year 2020-21 (assessment year 2021-22) on satisfying certain specific conditions such as not claiming certain deductions. A surcharge of 10 percent and cess of 4 percent will be applicable on companies claiming this option.

Corporate tax is applied at 2 rates: 12.5 percent for trading income and 25 percent for non-trading (passive) income.

Both ordinary income and real capital gains of a corporation are subject to a flat tax rate of 23 percent.

These rates might be significantly reduced if the corporation is entitled to one of the incentive regimes discussed under Tax incentives.

The IRES standard rate equals 24 percent. Specific surcharges are applied to specific sectors.

For corporate tax, the basic national corporate tax rate is 23.2 percent for taxable years commencing from April 1, 2018 or later. Corporations are also subject to local taxes, which increase the standard effective tax rate to 30.62 percent (if the office is located in Tokyo). Since April 2016, the amended Corporation Tax Act has come into force, and corporate tax on a foreign corporation with a permanent establishment in Japan is imposed on its income attributable to the permanent establishment in Japan. For small and medium-sized enterprises, the lowered 19 percent national corporate tax rate is applicable for the income equal to or less than 8 million yen perannum. Until the taxable years commencing before April 1, 2023, such rate is further lowered to 15 percent for a corporation which average taxable income for the last 3 fiscal years is not exceeding JPY1.5 billion.

For the fiscal year 2022, the corporate income tax (CIT) is 17 percent, leading to an overall tax rate for companies of 24.94 percent in Luxembourg City (taking into account the solidarity surtax of 7 percent and including 6.75 percent municipal business tax (MBT) rate applicable and which may vary depending on the seat of the company).

The corporate income tax rate is 30 percent and, for individuals, it is progressive up to a 35 percent rate.

There is also a value-added tax (VAT) of 16 percent on transfers of goods, rendering of independent services, leasing of goods and importation of goods or services into Mexico.

Further, there is an excise that intends to reduce consumption of harmful products (eg, tobacco, alcohol, pesticides) and limit the use of resources (eg, gasoline, energy).

The general rate of IRPC is 32 percent.

The standard corporate income tax rate is 25,8 percent. A lower rate of 15 percent applies for taxable income up to EUR395,000. 

The Netherlands only levies withholding tax up to 15 percent on outgoing dividends, often reduced under the application of tax treaties or a domestic withholding exemption. As of January 1, 2021, the Netherlands levies a conditional withholding tax of 25 percent (25.8 percent as of 2022) on payments of interest and royalties to low tax jurisdictions and in abusive situations.

The corporate tax rate is 22 percent (2022).

In Peru, CIT rate is 29.5 percent, which is applied on net income. The same rate and tax basis apply to businesses that are carried out directly by individuals.

It should be pointed out that there are special tax regimes (mainly for small businesses and business that carry on activities in the Amazon) where the business tax rate or business tax burden could be reduced if certain conditions are met.     

Personal tax

Individuals that are domiciled in Peru shall pay personal tax on their income obtained during a year (eg, dividends, interests, fees, among others). The tax rate depends on the type of income as follows:

• 5 percent on royalties, interests and dividends obtained in Peru.
• Income obtained by independent professionals are subject to a progressive tax rate as explained in the upcoming points.

Value-added tax

Valued-added tax (VAT) has a flat rate of 18 percent if incurred in the following transactions: supply of goods within Peru; supply of services within Peru and utilizations of services in Peru; construction contracts; first sale of real state property made by the constructors; and importation of goods.

The corporate income tax (CIT) rate is 19 percent or 9 percent for taxpayers with sales revenue, excluding output VAT and not exceeding EUR2 million (with certain restrictions).

The general corporate income tax rate is 21 percent. A reduced tax rate of 17 percent applies to the first EUR25,000 of taxable profits of small and medium-sized enterprises.

A state surcharge is levied on taxable profits at the following rates: 3 percent for profits over EUR1.5 million up EUR7.5 million; 5 percent on profits over EUR7.5 million up to EUR35 million and 9 percent on profits exceeding EUR35 million.

A municipal surcharge may be levied on taxable profits at rates up to 1.5 percent, depending on the municipality.

Romanian legal entities can be subject of 1 of the following tax systems:

Corporate income tax regime

Romanian tax resident entities and local permanent establishments of foreign entities are subject to 16 percent tax on their profits, computed/allocated as described above.

Micro-enterprise tax regime

Newly incorporated legal entities and companies that register a cumulative level of their taxable revenues (as listed by the tax legislation) lower than the RON equivalent of EUR1 million are obliged to apply the micro-enterprise taxation regime unless specific criteria regarding the share capital and the number of employees are met. The micro-enterprise tax applies to revenues derived by the entity and is 1 percent for entities that have at least 1 employee, and 3 percent for entities that have no employees.

After the above-mentioned threshold is exceeded, the legal entity automatically shifts to the corporate income tax regime.

Specific tax system for certain industries

Entities that operate in the hospitality industry are obliged to apply a specific taxation regime that is based on the business capacity and not on the level of the profits derived from their activity.

Casinos are obligated to apply the corporate income tax regime and pay a tax no lower than 5 percent of revenues related to gambling activities.

The general corporate profits tax rate is a flat rate of 20 percent.

The current prevailing rate of corporate income tax is 17% (unless a concessionary rate applies). Partial exemptions are available in respect of the first SGD 200,000 of chargeable income, as follows:

Alternatively, a 75% tax exemption on the first SGD 100,000 of normal chargeable income and a 50% exemption on the next SGD 100,000 of normal chargeable income is available to new start-up companies, subject to certain conditions.

A corporate income tax rebate of 25% (capped at SGD 15,000) applies to year of assessment 2020. There is no similar corporate income tax rebate for the year of assessment 2021 or 2022.

The tax rate for resident and foreign corporate entities is 28 percent. In the 2022 National Budget, it was announced that the corporate tax rate would be reduced to 27 percent with effect for companies with tax years ending on or after March 31, 2023

The basic rate on corporate income tax starts at 10% with a top rate of 25%. Corporate local income tax equivalent to approximately 10% of the corporate tax is also imposed.

The general corporate income tax rate is 25 percent. Reduced tax rates of 20 percent, 15 percent, 10 percent and 1 percent are applied to certain corporations. An increased tax rate of 30 percent applies to credit institutions and certain oil companies.

The corporate income tax rate is 20.6 percent.

Federal corporate income tax is levied at a flat rate of 8.50 percent on profits after tax (ie, the effective tax rate, or ETR, is about 7.83 percent on profit before tax, since income and capital taxes are deductible in determining taxable income).

In addition, each canton has its own tax laws and levies cantonal and municipal corporate income taxes, generally imposed at flat rates.

As a general rule, the combined effective federal, cantonal and communal corporate income tax rate (ETR) currently varies between 12 to 22 percent on profits before tax, depending on the canton and municipality.

For associations, foundations and other legal entities, as well as collective investment vehicles, lower rates may apply.

Equity tax is levied on a cantonal and communal level. The tax rates currently vary from 0.001 to 0.60 percent. On a federal level, no equity tax is levied.

Income tax is assessed at a rate of 20 percent, and the threshold for subjecting a Taiwan company to corporate income tax is TWD20,000 per annum.

In principle, the standard corporate tax rate is 20 percent. However, as per a provisional clause under the relevant legislation, it is applied as 23 percent for the 2022 fiscal year. It is calculated based on the fiscal profits on an annual basis.

Corporate income tax rate is 18 percent. Lower tax rates are applicable to income from insurance and gambling activities.

Oil and gas producing companies pay tax in the form of royalties as per specific government concession agreements, which are confidential.

Branches of foreign banks are subject to income tax at a rate of 20 percent.

The standard corporation tax rate is 19 percent (although the main corporation tax rate is due to rise to 25 percent from April 1, 2023).

Where the diverted profits tax applies, the applicable tax rate is 25 percent (although this is due to rise to 31 percent from April 1, 2023), and income subject to the ORIP rules is taxed at 20 percent.

The digital services tax rate is 2 percent of group revenue derived from UK users (in excess of a de minimis revenue of GBP25 million), although there is an alternative “safe harbor” calculation for groups with low operating margins.

Flat federal corporate income tax rate of 21 percent. State and local taxes also may apply.

Tax rates differ based on the entity being taxed and are subject to change at the beginning of each tax year.