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Corporate Tax Rate Survey 2006 17
taxed either on five percent of gross shipping or air transport income derived from Malaysia or on that part of the Malaysian gross income computed in the proportion of world-wide profits to world-wide gross income. Income of resident corporations deriving from the transportation of passengers or cargo on board Malaysian ships is tax exempt. Companies engaged in petroleum operations are subject to petroleum income tax at 38 percent. Income from leasing movable property received by a non-resident corporation without a permanent establishment in Malaysia is taxed at 10 percent. Leasing income of a permanent establishment in Malaysia will be taxed at 28 percent. Effective from the assessment year 2004, a resident company with a paid-up ordinary share capital of up to RM2.5 million at the beginning of a basis period is taxed 20 percent on its first RM500,000 chargeable income. The remainder is taxed at 28 percent.
49 Malta (2006 rate = 35%) Companies are subject to corporate income tax at a rate of 35 percent, levied on taxable profits (whether or not distributed) and on capital gains realized upon the transfer of assets. Malta operates a full imputation system of taxation for both residents and non-residents, which ensures the full relief of economic double taxation upon the distribution of taxed profits by companies.
50 Mauritius (2006 rate = 25%) The corporate income tax rate is 25 percent. A 15 percent corporate income tax rate applies to companies qualifying for a tax incentive. A company holding a Banking License under the Banking Act 2004 operating under Segment B (formerly called offshore banking) is now taxed at 25 percent (previously 15 percent).
51 Mexico (2006 rate = 29%) The Mexican corporate income tax rate for 2005 is 30 percent. This rate will be reduced to 29 percent for 2006 and to 28 percent from 2007 onwards.
52 Mozambique (2006 rate = 32%) Agricultural companies and organizations are taxed at 10 percent on taxable income until December 31 2010. Agricultural, cultural and artisan cooperatives are subject to a 50 percent reduction in the rate, effectively resulting in a rate of 16 percent. Some investment projects approved by the Government of Mozambique prior to January 1, 2003 are, in general, subject to various lower rates, which are applicable until the end of the period specified for each project. Investment projects approved as from 1 January 2003, are in general subject to the normal rate of 32 percent, but get a tax credit of five percent of the investment made in the first five years of implementation of the project.
53 Netherlands (2006 rate = 25.5%/29.6%) The lower rate applies to the first EUR 22,689 of taxable profits. Rates will be reduced on January 1, 2007 to 24.5/29.1 percent.
54 Netherlands Antilles (2006 rate = 34.5%) The rate of 34.5 percent includes the islands’ 15 percent surcharge. Companies operating in economic zones are taxed at the rate of two percent. For certain activities, tax holidays are available lowering the tax rate to six percent or less. Qualified limited liability companies engaged in certain financial activities are exempt from corporate income tax.
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