The standard corporate tax rate for companies (including mining companies) is 30%. Capital gains are taxed at the same rate as ordinary business profits, i.e. at 30%. Effective 1 July 2020, however, a capital gains tax at the rate of 10% applies to resident companies on the realization of licenses or concessional rights on reserved land.
Other corporate income tax rates apply as follows:
- A reduced rate of 25% applies to newly listed companies for a consecutive 3 years from the date of listing, provided at least 30% of the shares are issued to the public;
- Effective from 1 July 2017, a reduced rate of 10% (for a period of 5 years from the commencement of operations) applies to newly established plants for assembling of vehicles, tractors and fishing boats which hold a performance agreement with the Government;
- Effective 1 July 2018, a reduced rate of 20% (for a period of first 5 years) applies to newly established companies engaged in the manufacture of pharmaceuticals and leather products, and which hold a performance agreement with the Government;
- Gaming winnings are subject to gaming tax at the rate of 15% (reduced from 20% effective 1 July 2021). Other types of gaming taxes range from 10% to 25% depending on the type of the game; and
- Companies eligible for tax incentives are subject to reduced corporate income tax rates (see Sec.10.).
Withholding tax (WHT) rates on payments made to residents are as follows: