The Finance Law 2018 modified the corporate tax rates for tax years starting on or after 1 January 2018 as follows:
|Rate for companies active in the telecommunication, banking and insurance sectors, as well as companies engaged in the importation, warehousing, storage or distribution of petroleum products||35%|
Capital gains realized on the sale of shares are subject to tax at 10%.
Dividends received by parent companies are subject to tax at the reduced rate of 5%, subject to certain conditions.
A Minimum annual tax based on turnover is payable at the rate of 3% effective 1 January 2019 (1.5% in 2018) of the gross annual turnover of the preceding year, subject to a minimum of GNF 75 million and a maximum of GNF 100 million for large companies and minimum of GNF 15 million and a maximum of GNF 45 million for medium-sized companies. Excess minimum tax over the 75 or 15 million thresholds is creditable against the corporate tax due. Effective 1 January 2019, qualifying investment companies are eligible for a total or partial relief from the minimum tax (see Sec. 10.).