According to Article 36 of the law number 7254, the Corporate Income Tax calculated by companies (including quarterly provisional tax periods) cannot be less than 10% of the corporate income before the deduction of discounts and exceptions.
When calculating the domestic minimum CIT, the following exemptions and discounts can be deducted from the corporate income:
- Participation exemption for domestic income;
- Emission premium exemption;
- Return exemption for cooperatives;
- Sale-leaseback exemption;
- Fund income exemption;
- Venture capital fund discount;
- Disabled employee support discount;
- Earnings exempt from tax under the International Ship Registry Law;
- Earnings exempt from tax under the Free Zones Law;
- Technology Development Zone and R&D discount; and
- Investment incentive discount.
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