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5.1. Tax Base for Resident Entities

Under the domestic tax laws, resident companies are subject to corporate tax on worldwide income. All receipts as reduced by exemptions and deductions allowed under prevailing tax law is tax base for such companies. Capital gains include gains arising from the disposal/ sale of shares and business assets and are considered in the tax base.

A participation exemption applies for dividend income earned by residents from other resident entities, provided tax is paid by the distributing company on the underlying profits.