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6.1. Main Rules Governing the Determination of Taxable Income

The companies are required to compute their taxable income using the accrual method of accounting which recognizes income when earned and expenses when due. Gain or loss on investment is taxed on realized basis. Foreign currency exchange gain/ loss is taxed on realized basis namely, realized gains are subject to tax and corresponding losses are deductible expenses. Accounting income is adjusted for non-tax deductions, exemptions, etc.