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8 Corporate Tax Rate Survey 2006

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1 Albania (2006 rate = 20%) The corporate income tax is 20 percent of the taxable profit earned during a fiscal year (January 1 to December 31). A taxable profit is defined as the generated gross income, minus related expenses. There are certain non-deductible expenses outlined in the law, such as expenses without a regular invoice. There are no reduced rates, but there are certain tax incentives for tourism.

2 Argentina (2006 rate = 35%) A o n e p e r c e n t t a x o n t h e c o m p a n y s a s s e t s ( l i a b i l i t i e s c a n n o t b e d e d u c t e d ) i payable as a minimum income tax. Some assets, such as stocks, shares of other entities subject to taxation, and assets of mining companies, are exempt from minimum income tax. The acquisition of new goods – apart from automobiles - and investment in the construction of new buildings or refurbishing (for the first two years) are also excluded from minimum tax. The minimum income tax system only applies to the extent it exceeds the (regular) income tax calculated as a percentage of the taxable income. Minimum income tax paid in any given year reduces the (regular) income tax of subsequent years (maximum carry forward of 10 years). s

3 Aruba (2006 rate = 35%) In general, Aruban companies are subject to a corporate income tax rate of 35 percent. Companies operating in the free zone are taxed at a rate of two percent. A so-called Imputation Payment Company (IPC) is subject to an effective corporate tax rate of two percent; an IPC pays 35 percent corporate income tax, but shareholders are entitled to an imputation payment of 33 percent from the Aruban government after a dividend distribution by an IPC.

4 Australia (2006 rate = 30%) The corporate income tax rate is set at a flat rate of 30 percent, and applies to both resident and non-resident companies. A resident company is liable to income tax on worldwide income and capital gains. A non-resident company is liable to income tax on Australian-source income only, and on capital gains from the disposal of particular types of assets that have a necessary connection with Australia. The Australian tax system provides taxation relief against international double taxation by granting foreign tax credits in some circumstances and in others, by exempting the foreign income from Australian tax. The corporate income tax rate applies to income earned during the period from July 1 to June 30 of the following year. If a company has approval to use a different year-end for tax purposes, the approved period must still relate to a June 30 year-end (e.g. a year ended December 31, 2004 will generally relate to the year of income in which the accounting period ends; i.e. June 30, 2005). For the year July 1, 2001 to June 30, 2002 and later income years, the corporate tax rate is 30 percent.

5 Austria (2006 rate = 25%) There are no notes for 2006.

6 Bangladesh (2006 rate = 30%) The income of publicly traded companies, i.e. listed companies, other than banks and financial institutions, is taxed at a 30 percent. If a publicly traded company, other than a bank or financial institution, pays a dividend that exceeds 20 percent of the paid-up capital for an income year, it receives a 10 percent rebate on the tax payable. If the company pays a dividend lower than 10 percent of the paid-up capital, the company is taxed at a 40 percent rate. All other companies, including branches of foreign companies, are taxed at 40 percent. Banks, insurance

© 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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