22 Corporate Tax Rate Survey 2006
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76 Thailand (2006 rate = 30%)
The standard corporate income tax rate is 30 percent, but this may be reduced to 20 percent or 25 percent in the case of certain Thai companies listed on the Stock Exchange of Thailand prior to 31 December 2005. A tax rate of 10 per cent applies to the remittance of dividends or branch profits abroad. For small and medium enterprises (SMEs) with less than Baht five million paid up capital, the corporate income tax rate is reduced to 15 percent on the first Baht one million of net taxable profits and 25 per cent on the next Baht two million, but not exceeding Baht three million. Corporate income tax exemptions (tax holidays and corporate tax rate reductions) are granted to companies promoted by the Board of Investment (BOI), Asset Management Companies (AMC) and venture capital companies investing in SMEs, subject to certain conditions. Corporate income tax incentives were introduced in 2002 for Thai Regional Operating Headquarters (ROH). The corporate income tax rate is reduced to 10 per cent on qualifying ROH service income, royalties and interest, and zero per cent on dividends received from associated enterprises. A corporate tax rate of three per cent applies to gross income of companies engaged in international transportation (subject to any further mitigation under relevant double taxation treaties). A corporate tax rate of 10 per cent applies to the net taxable profits of companies engaged in International Banking Facility and to gross income (reduced to two per cent for certain types of income) of foundations and associations engaged in business activities. A petroleum (oil, gas and derivatives) tax rate of 50 per cent applies to the net taxable profits of companies with concessions to explore for and produce petroleum.
77 Tunisia (2006 rate = 35%) The corporate income tax rate applies to resident companies and to permanent establishments of non-resident companies. There is a minimum tax payable of TD 2,000 or 0.5% of the annual turnover. There is a 50 percent tax base reduction for: export profits from the 11th year and for an unlimited period and regional development projects for 10 additional years and a 10 percent tax rate reduction for: education, teaching, vocational training projects and environment protection projects. Business profits of companies established in free zones are only subject to the following taxes and duties: duties and taxes related to passenger cars, single countervailing duty on land transport, contributions to the social security legal scheme, corporate income tax from the 11th year of operation (then from the first effective export sale there is a 50 percent deduction for exports-derived profits). For investments made in free trade zones companies are allowed to deduct the net taxable income and profits for natural persons or companies, provided that the income and profits are re-invested in the free trade zones.
78 Turkey (2006 rate = 30%) From January 1, 2005 onwards, the statutory corporate income tax rate is 30 percent. The Turkish Government plans to reduce the corporate income tax rate from 30 to 20 percent for profits generated from 2006 onwards, but the relevant tax law has not yet been passed.
79 Ukraine (2006 rate = 25%) The basic corporate income tax rate is 25 percent. Special tax rates may apply, depending on the business activities (e.g. a three percent corporate income tax rate is applied to insurance income earned by Ukrainian insurance companies).
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