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6.1. Main Rules Governing the Determination of Taxable Income

Taxable income is determined by adjusting the accounting/ financial income for non-tax deductions, exemptions, etc.

Effective 1 January 2022, small, medium, and large enterprises must use the accrual method for maintaining accounting books and effective from 1 January 2023 micro enterprises may adopt the cash or accrual methods for maintaining accounting books.

Enterprises failing to use the allowed accounting method according to their size as mentioned above, will be subject to a penalty equal to 20% of expenses incurred.