Local entities are subject to an income tax rate of 30% for fiscal year 2019 and 25% as of fiscal year 2020.
In general, local individuals are taxed at a progressive tax rate that goes from 5% to 35%, 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% income tax rate if the title is issued in Argentine pesos, or 15% income tax rate if a share of a corporation is transferred, or if the title or sovereign bond is issued in Argentine pesos with adjustment clause or in foreign currency
- The transfer of real estate by a local individual is taxed at a 15% of income tax rate
- Interests of financial investments such as bank deposits, sovereign bonds, negotiable obligations, financial trusts and similar, issued in Argentine pesos without adjustment clause, are taxed at an income tax rate of 5%. The applicable tax rate is 15% when issued in Argentine pesos with adjustment clause or when issued in foreign currency
- Dividends paid to a local individual are taxed at a 7% tax rate for fiscal year 2019 and 13% as of fiscal year 2020
In general non resident entities and individuals are taxed at an income tax rate of 35% applied on the presumption of taxable income with effective tax rates of 12.5% up to 31.5% (see Taxable Incomes). Some concepts are not taxed at the general 35% tax rate and are taxed to an specific tax rate.
- Transfer of sovereign bonds or any title (public or private) is taxed at a 5% income tax rate if the title is issued in Argentine pesos, or 15% income tax rate if the title is issued in Argentine pesos with adjustment clause, or in foreign currency. The transfer of shares of a local corporation is taxed at a 15% income tax rate. This assumes that the foreign beneficiary is in a jurisdiction considered as cooperative for tax purposes
- Interests of financial investments such as bank deposits, sovereign bonds, negotiable obligations, financial trusts and similar, issued in Argentine pesos without adjustment clause are taxed at an income tax rate of 5%. The applicable tax rate is 15% when issued in Argentine pesos with adjustment clause or when issued in foreign currency. This provided 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% tax rate for fiscal year 2019 and 13% as of fiscal year 2020
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%, unless they qualify for a lower rate (27.5% for the 2018-19 income year, 26% for the 2020-21 income year and 25% for later income years) by satisfying specific requirements (ie, having an aggregated turnover of less than AUD 50 million and satisfying an active income test).
Profits of corporate entities are taxed at the company level at a flat rate of 25% corporate income tax (Körperschaftsteuer). Payments where the recipient is not disclosed (Empfängerbenennung) may attract a 25% surcharge and are not tax deductible.
Resident companies are subject to a standard corporate income tax rate of 29.58%. This rate will be reduced to 25% as from 2020. The first income band of €100,000 of small companies is subject to a lower rate of 20.40% (20% as from 2020).
See Taxable income.
The federal corporate tax rate for 2019 is 15% on general active business income, and the combined federal and provincial corporate tax rates for 2019 range from 26.5% to 31% depending on the provinces in which the permanent establishments of a corporate taxpayer are located.
The standard enterprise income tax rate is 25%, with a few preferential tax rates applicable to qualified enterprises.
The standard withholding income tax rate for non-resident enterprises is 10%, which may be reduced by applicable tax treaties.
33% for 2019
32% for 2020
31% for 2021
30% as of 202
Financial institutions that report a taxable income exceeding 120,000 UVT (in 2019 COP$4.1billion) are subject to the following tax rates:
37% for 2019
35% for 2020
34% for 2021
30% as of 2022
The corporate income tax rate is 20%.
Graduated income tax rates start at 15% with a top rate of 32.02% in 2019 (including additional contribution at the rate of 3.3%). For 2019, the standard corporate income tax rate is 28% to the extent of €500,000 and 31% for the portion exceeding the threshold, on top of which miscellaneous contributions may be added. The Finance Act for 2018 provided for a progressive reduction of corporation tax rates to 28% on January 1, 2020, applicable from the first euro, 26.5% on January 1, 2021 and 25% on January 1, 2022.
The corporate income tax rate is 15% plus 5.50% solidarity surcharge levied on the corporate income tax (ie, 15.825% including the solidary surcharge).
The trade tax rate, which is levied by municipalities, varies, but in practice averages 14% to 17% of taxable income. Trade tax is based on taxable income as calculated for corporate income tax purposes. However, several income adjustments apply.
Under the new two-tiered profits tax rate regime (effective from April 1, 2018), the profits tax rate for the first HK$2 million of profits of corporations will be lowered to 8.25%; profits above that amount will continue to be subject to the normal tax rate of 16.5%. The said rates apply on all assessable income with only 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%) applies to items of income such as income from qualifying debt instruments issued in Hong Kong or the offshore business income of professional reinsurance companies or profits from contract manufacturing on the mainland. In addition, qualifying corporate treasury centers may enjoy a 50% concession (ie, 8.25%) on the prevailing rate of normal Hong Kong profits tax (ie, 16.5%) on the qualifying profits.
Income tax rates applicable to an individual taxpayer range from a rate of 0% to 30%. Surcharge of 10% is payable if the income of the individual taxpayer is between INR5,000,000 (Rs. 5 million) to INR10,000,000 (Rs. 10 million) and surcharge of 15% is payable if the income of the individual taxpayer exceeds INR10,000,000 (Rs. 10 million). The income tax rate for domestic companies is 25% if turnover or gross receipt of the company does not exceed INR2,500,000, 000 (Rs. 2.5 billion) in the Financial Year 2018-19. A surcharge of 7% is payable if the income of the domestic company exceeds INR10,000,000 (Rs. 10 million) but does not exceed INR100,000,000 (Rs. 100 million). A surcharge of 12% is payable if the income of the domestic company exceeds INR100,000,000 (Rs. 100 million). Over and above the income tax and surcharge, health and education cess is payable at the rate of 4% of the income tax and surcharge by all taxpayers.
Corporate tax is applied at two rates, 12.5% for trading income and 25% for non-trading (passive) income.
Both ordinary income and real capital gains of a corporation are subject to a flat tax rate of 23%.
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%. Specific surcharges are applied to specific sectors.
For corporate tax, the basic national corporate tax rate is 23.2% 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% (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. According to the 2019 Japan tax reform outline, the applicable period for the reduction of corporate income tax rate (which is 15% of income equal to or less than 8 million yen per annum) for small and medium enterprises will be extended by two years
As of January 1, 2019, the corporate income tax (CIT) rate has been reduced to 17%, leading to an overall tax rate for companies of 24.94 in Luxembourg City (taking into account the solidarity surtax of 7% and including 6.75% municipal business tax rate applicable and which may vary depending on the seat of the company). This measure was planned in order to strengthen the competiveness of companies.
The corporate income tax rate is 30%, and for individuals it is progressive up to a 35% rate.
There is also a Value Added Tax (VAT) of 16% 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 (ie tobacco, alcohol, pesticides, etc) and limit the use of resources (ie gasoline, energy, etc).
Based on a special Presidential Decree published on December 31, 2018, tax incentives are available for tax residents of the Mexican border region, for years 2019 and 2020. These incentives include tax credits through which the corporate income tax rate would be reduced from 30% to 20%, and the VAT rate would be reduced to 8%. In order to apply the benefits of the Decree, qualified legal entities, individuals and branches of foreign entities must comply with specific requirements and formalities.
The standard corporate income tax rate is 25%. A lower rate of 20% applies for taxable income up to €200.000.
The Netherlands only levy withholding tax up to 15% on outgoing dividends, often reduced under the application of tax treaties or a domestic withholding exemption. There are no withholding taxes on payment of interest and royalties.
The corporate tax rate is 22% (2019).
The corporate income tax (CIT) rate is 19% or 9% for so called small taxpayers (ie, entities with sales revenue, including output VAT, for the previous year not exceeding EUR 1.2 million and first year taxpayers who just started business activity).
The general corporate income tax rate is 21%. A reduced tax rate of 17% applies to the first EUR 15,000 of taxable profits of small and medium-sized enterprises.
A state surcharge is levied on taxable profits at the following rates: 3% for profits over EUR 1.5 million up EUR 7.5 million; 5% on profits over EUR 7.5 million up to EUR 35 million and 9% on profits exceeding EUR 35 million.
A municipal surcharge is levied on taxable profits on rates up to 1.5%, depending on the municipality.
Romanian legal entities can be subject of one of the following tax systems:
Corporate income tax regime
Romanian tax resident entities and local permanent establishments of foreign entities are subject to 16% tax on their profits, computed/allocated as described above.
Micro-enterprise tax regime
Newly incorporated legal entities and companies that have a turnover lower than the RON equivalent of EUR 1,000,000 are obliged to apply the micro-enterprise taxation unless specific criteria regarding the share capital and the number of employees are not met. The micro-enterprise tax applies to revenues derived by the entity and is 1% for entities that have at least one employee, and 3% for entities that have no employees.
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.
The general corporate profits tax rate is a flat rate of 20%.
The current prevailing rate of corporate income tax is 17%. Partial exemptions are available in respect of the first S$300,000 of chargeable income, as follows:
|YA 2019||YA 2020|
|Chargeable income||Exemption available||Exempt amount (S$)||Chargeable income||Exemption available||Exempt amount (S$)|
|First S$10,000||75% exempt||7,500||First S$10,000||75% exempt||7,500|
|Next S$290,000||50% exempt||145,000||Next S$290,000||50% exempt||95,000|
|Total exempt amount||152,500||Total exempt amount||102,500|
Full tax exemption on the first S$100,000 of normal chargeable income and a further 50% exemption on the next S$200,000 of normal chargeable income is available to new startup companies for YA 2019, subject to certain conditions. For YA 2020, the 50% tax exemption will apply only to the next S$100,000 of normal chargeable income.
In addition, a 20% corporate income tax rebate (capped at S$10,000) is available to all companies for YA 2019.
The tax rate for resident and foreign corporate entities is 28%.
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%. Reduced tax rates of 20%, 15%, 10% and 1% are applied to certain corporations.
The corporate income tax rate is 21.4 % (2019 and 2020) and then further reduced to 20.6% (2021 and onwards).
Federal corporate income tax is levied at a flat rate of 8.50% on profits after tax (ie, about 7.83% on profit before tax).
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 currently varies between 12% to 25% 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 might apply.
Equity tax is levied on a cantonal and communal level. The tax rates currently vary from 0.001% to 0.60%. On a federal level, no equity tax is levied.
Income tax is assessed at a rate of 20% and the threshold for subjecting a Taiwan company to corporate income tax is NT$120,000.00 per annum.
Standard corporate tax rate is 20%. It is calculated based on the fiscal profits on an annual basis.
Corporate income tax rate is 18%. Lower tax rates are applicable to income from insurance and gambling activities.
United Arab Emirates
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%.
The standard corporation tax rate is 19%. It is proposed that this will be reduced to 17% with effect from April 1, 2020.
Flat federal corporate income tax rate of 21%. 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.