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Retained

  • Statutory Tax Rate 20
  • Surtax Based on Taxable Income 1
  • Surtax Based on Statutory Tax 0
  • Surtax Deductible from Taxable Income 0
  • Statutory Tax Deductable 0
  • Effective Tax Rate 21

Statutory Tax Rate

The standard corporate tax rate for companies is 20%. The rate is 24% for telecommunication, insurance and reinsurance, financial intermediation, and electricity companies, and companies that undertake mining raw material activities, and 35% rate applies for banks. A reduced rate of 10% applies for manufacturing companies operating in developing areas effective 1 January 2019 (5% if the local value added from such activities exceeds 30%).

In addition, from 2019 a national contribution tax on taxable income applies at different rates depending on sector:

  • Raw material mining - 7%
  • Financial intermediation and brokerage, and financial leasing - 4%
  • Banks and electricity generation/distribution - 3%
  • Telecommunications, insurance, and reinsurance - 2%
  • All other sectors - 1%