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8.1.1. Corporate Income Tax

The standard corporate tax for companies is 32% (applicable to tax years beginning on or after 1 January 2015) including capital gains on the sale of mineral and petroleum licenses. Income of insurance companies is also taxed at 32%. However, a number of other rates apply as follows:

  • 18% on income of manufacturing companies for the first 10 years of registration as a manufacturer. Effective 31 December 2020, the registration of companies as registered manufacturers and the corresponding tax benefits are repealed. However, pursuant to the Income Tax Laws Amendment Act of 2021, manufacturers that are registered as on 31 December 2020, will continue to benefit from the reduced rate of tax (see Sec. 10.) until 31 December 2025. The standard corporate tax rate of 32% applies thereafter;
  • 37.5% on income of hard-rock mining companies and 55% on income of diamond mining companies;
  • 37.5% on income of mining service companies (companies that subcontract their work to mining companies);
  • 35% plus additional profit tax (computed as prescribed in the petroleum laws) on the income of petroleum exploration and production companies; and
  • Companies eligible for tax incentives are subject to reduced corporate tax rates (see Sec. 10.)

Alternative Minimum Tax

There is no minimum tax.