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20 Corporate Tax Rate Survey 2006

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66 Russia (2006 rate = 24%) Federal tax authorities determine the applicable tax rates, but tax payments are split into federal taxes (6.5 percent) and regional taxes (17.5 percent with the right to reduce to 13.5 percent). Local taxes are no longer payable. Interest income on state securities is taxed at 15 percent or zero percent.

67 Singapore (2006 rate = 20% on income derived in 2005) From the Year of Assessment (YA) 2002 onwards, a partial tax exemption is granted on the first S$100,000 of income as follows: 75 percent up to the first S$10,000 of income and 50 percent on the next S$90,000 are exempt from corporate income tax. For new companies whose first three assessment years fall within YA 2005 to 2009, full tax exemption of regular income (excluding Singapore franked dividends) up to S$100,000 can be claimed provided certain conditions are met. Entities engaged in certain prescribed activities are subject to a concessionary tax rate of 10 percent or lower, or are granted tax incentives. Such activities or incentives include the financial sector incentive scheme, offshore leasing, offshore insurance and reinsurance, offshore global trading, international art and antique dealers, cyber trading, finance and treasury centers, international headquarters and shipping enterprises. For certain activities, approval needs to be sought before tax exemption or the concessionary tax rate can apply.

68 Slovak Republic (2006 rate = 19%) The corporate income tax rate is 19 percent.

69 Slovenia (2006 rate =25%) The corporate income tax rate is 25 percent.

70 South Africa (2006 rate = 36.9%) The corporate income tax rate applicable to companies is currently 29 percent. However South Africa imposes an additional 'Secondary Tax on Companies' at the rate of 12.5 percent on any net dividends declared by the company. The tax is levied on the company declaring the dividend. The effect of this additional tax is that if a company distributes 100 percent of its after-tax earnings as a dividend, an effective tax rate of 36.89 percent will apply. This does not apply to gold mining companies, which are taxed on a formula basis.

71 Spain (2006 rate = 35%) Companies whose turnover (alone, or with Group companies) in the immediately preceding tax period was less than six million Euros are taxed at the rate of 30 percent on the first EUR 90,151 of taxable income and at the general tax rate of 35 percent for the rest of their taxable income. The following will be taxed at a rate of 25 percent: (a) General Mutual Insurance Companies, Social Welfare Institutions and qualified Social Security Mutual Entities for Accidents at Work and Occupational Diseases. (b) Mutual Guarantee Entities and Guarantee Underwriting Companies regulated by Law 1/1994 of 11 March on the Legal Regime for Mutual Guarantee Societies registered with the Bank of Spain and (c) Credit and rural credit cooperatives. Tax protected cooperatives will be taxed at the rate of 20 percent, except in respect of results not related to their corporate purpose, which will be taxed at the general rate. Entities qualifying to benefit from the special tax regime on Foundations and Tax Incentives for Private Participation in Activities of General Interest will be taxed at the rate of 10 percent.

© 2006 KPMG International. KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides no services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. All rights reserved.

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