Alternative minimum tax
Argentina
Not applicable for this jurisdiction.
Australia
Not applicable for this jurisdiction.
Austria
Corporations are subject to a minimum corporate income tax of 5 percent of the statutory minimum capital (GmbH EUR1,750 (5 percent of EUR35,000), GmbHs founded after 2013: reduced to EUR500 in the first 5 years after formation, EUR1.000 for subsequent years, AG EUR3,500 (5 percent of EUR70,000)). Special provisions apply for banks and insurance companies.
Belgium
Belgian legislation does not provide for alternative minimum tax.
Brazil
Brazilian legislation does not provide for alternative minimum tax.
Canada
Corporations (non-resident or resident) are not subject to federal alternative minimum tax in Canada. A corporate minimum tax may be imposed at the provincial level.
Chile
Not applicable for this jurisdiction.
China
Not applicable for this jurisdiction.
Colombia
Not applicable for this jurisdiction.
Finland
Not applicable.
France
Not applicable for this jurisdiction.
Germany
Not applicable for this jurisdiction.
Hong Kong, SAR
Not applicable for this jurisdiction.
Hungary
Companies are required to pay corporate income tax (based on a so-called minimum taxable base) even if they do not make a profit, unless they present their cost structure on an additional form attached to their tax returns.
India
Every domestic corporation is subject to Minimum Alternate Tax (MAT) of 15 percent for assessment year 2023–-24 (financial year 2022–23). A corporation pays the greater of its regular tax liability and its MAT tax liability. Foreign corporations may also be subject to MAT. However, companies opting to pay a concessional tax rate of 25 or 15 percent, as the case may be, are not required to pay MAT. Every non-corporate taxpayer also is required to pay similarly Alternate Minimum Tax (AMT) of 18.5 percent.
Ireland
Not applicable for this jurisdiction.
Israel
Not applicable for this jurisdiction.
Italy
Non-operating companies are subject to a minimum level tax, depending on the assets they own.
Japan
Under Japanese tax law, there are no taxes that are equivalent to the Alternative Minimum Tax.
Luxembourg
Not applicable for this jurisdiction. However, please see the developments on minimum wealth tax discussed below.
Mexico
Not applicable.
Mozambique
Simplified tax for small taxpayers (ISPC)
The ISPC is a direct tax applicable to natural or legal persons engaged in small-scale agricultural, industrial or commercial activities, including the provision of services, in the national territory. For the purposes of this tax, a small-scale business is one the annual turnover of which is less than or equal to MZN2.5 million (approximately USD33,783.00 at the exchange rate of 1USD = MZN 74.00).
Taxpayers who opt for ISPC on their activities of supply of goods and services are no longer subject to VAT, and any income derived from those activities will not be subject to either personal income tax (IRPS) or corporate income tax s(IRPC).
ISPC is due for each tax year, which coincides with the calendar year. Applicable rates are as follows: Annual rate of ISPC MZN75,000 (approx. USD1.013 at the exchange rate of 1USD = MZN74.00). Alternatively, 3-percent rate on the turnover may be applied.
For taxpayers who commence business and opt for the first time for the ISPC a reduction of 50 percent of the applicable tax rate in the 1st year of activity is available.
Netherlands
Not applicable for this jurisdiction.
Norway
Not applicable for this jurisdiction.
Peru
Not applicable for this jurisdiction.
Poland
In Poland, legislation establishing a minimum corporate tax went into effect in 2022. This tax, however, will apply to tax years beginning after December 31, 2023.
Minimum corporate tax will be levied on any entity subject to CIT (including tax capital groups) that:
- suffered a loss for a given tax year or
- whose share of income in revenues (other than capital gains) calculated for tax purposes is less than 2 percent.
The provision will not apply, inter alia, to startups or taxpayers who recorded over a 30-percent decrease in revenues.
Portugal
Not applicable for this jurisdiction.
Romania
Micro-companies tax
Romanian legal entities that register a cumulative level of their taxable revenues (as listed by the tax legislation) lower than the RON equivalent of EUR1 million in the previous year are subject to a specific micro-companies taxation system. Micro-companies are liable to pay a tax on their turnover of 1 percent for companies having at least one employee on their payroll and 3 percent otherwise.
Entities that operate in the hospitality industry are obliged to apply a specific taxation regime that is based on 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.
Russia
Not applicable for this jurisdiction.
Singapore
Not applicable for this jurisdiction.
South Africa
Not applicable for this jurisdiction.
South Korea
Every domestic corporation is subject to minimum tax. A corporation pays the greater of its regular tax liabilities or its minimum tax liability. Foreign corporations are subject to minimum tax on taxable income that is effectively connected with domestic source income.
Spain
Taxpayers with net turnover exceeding a EUR20 million threshold, or those taxed under a consolidated basis, will be taxed using, in general, a minimum tax quota of 15 percent of the taxable base.
Sweden
Not applicable for this jurisdiction.
Switzerland
In half of the cantons, instead of corporate income tax, a minimum tax is paid, provided such minimum tax exceeds the corporate income tax otherwise due. There are no minimum taxes on a federal level.
Taiwan, China
According to the Taiwan Income Basic Tax Act, a domestic company or a foreign company with a fixed place of business/permanent establishment or business agent in Taiwan (PE) is subject to a separate alternative minimum tax (AMT) if it earns certain income that is tax exempt or enjoys certain tax incentives and the company’s basic income exceeds TWD500,000. The AMT rate is 12 percent. If the company’s regular income tax is greater than the AMT, no special action is required. If the AMT tax liability is greater than the regular income tax, the company is required to calculate and pay AMT.
Turkey
Not applicable for this jurisdiction.
Ukraine
Not applicable for this jurisdiction.
United Arab Emirates
Not applicable for this jurisdiction.
United Kingdom
Not applicable for this jurisdiction.
United States
The corporate alternative minimum tax is repealed for tax years beginning after 2017.
Zimbabwe
Presumptive tax is payable as an alternative to normal corporate tax but this option is only available to informal traders and certain categories of self-employed professionals. It is expressed as a fixed sum for each category of informal trader or self-employed professional.