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8.1.1. Corporate Income Tax

The standard corporate tax (‘CIT’) rate for companies is 20%.

However, a number of other rates apply as follows:

  • Companies listed on the SPSE and holds at least 40% of shares in resident company is subject to tax at the rate of 10%
  • Capital gains on disposal of capital assets (except trading stock, certain depreciable assets, business intangibles) such as land, etc. are subject to capital gains tax at 10%
  • Capital gains on disposal of depreciable assets are subject to CIT at 20%
  • Dividends:
    • From 1 August 2017, the tax on dividend income has been abolished. Previously, effective from 1 January 2016, dividends paid by resident companies to another resident was taxed at 3%. Companies are required to pay a ‘Transitional Tax’ on the undistributed profits prior to tax year 2014, i.e. on pre-2014 balances as at 29 June 2017 at 1%, which is payable by 30 September 2017.

Alternate Minimum Tax

There is no minimum tax.