Taxation of income of corporations - General
The corporation tax is a particular type of income tax for legal persons, associations and conglomerations of property. Just like income tax, the corporation tax belongs to the direct taxes and is a personal tax which cannot be deducted from the income.
Corporation tax and income tax exist concurrently. Profit made by a corporation is therefore counted as part of the basis of charge of the corporation tax of the corporation.
In the case of distribution to individuals it is also counted as part of the basis of assessment of the income tax of the shareholder.
Profits distributed to another corporation are almost completely exempt from taxation for the receiving corporation. Only 5 % of the corporation's dividend income must be treated as a non-deductible business expense.
Further information on corporation tax can be found using the navigation bar on the left.
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