The ITA levies a tax equal to 28% of South African after-tax profits generated by a branch of a non-resident company. Branches are not subject to dividend tax or branch profit repatriation tax. Given the announcement that the corporate tax rate will be reduced from 28% to 27% for taxation years beginning on or after April 1, 2022, the branch tax rate is also expected to be reduced to 27% effective the same date. * The standard corporate tax rate is 35%, which applies to both Comorian companies and foreign companies that generate Comorian income. However, public industrial and commercial enterprises or those in which the State or certain public bodies have a stake are subject to a corporate tax rate of 50 per cent if their turnover exceeds 500 million Comorian francs; see Bloomberg Tax, „Country Guides: Comoros,” www.bloomberglaw.com/product/tax/document/25590833704. Sources: OECD, „Table II.1. Statutory corporate tax rate; KPMG, „Table of Corporate Tax Rates”; Bloomberg Tax, „Country Guides – Corporate Tax Rate”; and searched individually, see Tax Foundation, „worldwide-corporate-tax-rates/”. Notes: * Bahrain does not have a general corporate tax, but a targeted corporate tax for oil companies, which can reach 46%. See Deloitte, „International Tax – Bahrain Highlights 2021,” last updated January 2021, www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-bahrainhighlights-2021.pdf. The United Arab Emirates is a federation of seven different emirates.

Since 1960, each emirate has had the discretion to levy up to 55% corporate tax rate on each company. In practice, this tax is usually levied by foreign banks and oil companies. More information on the UAE tax system can be found on PwC, „Worldwide Tax Summaries – Corporate Income Tax (CIT) rates”. www.taxsummaries.pwc.com/quick-charts/corporate-income-tax-cit-rates. Asia has the lowest regional average rate at 19.62 per cent, while Africa has the highest regional average legal rate at 27.97 per cent. In terms of GDP, however, Europe has the lowest regional average rate at 23.97% and South America the highest at 31.03%. A foreign company doing business in South Africa is subject to tax under the ITA in respect of its taxable income, which is considered to come from a South African source. Codified source rules apply to many types of income. The Companies Act does not provide for contributions of shares that a shareholder makes to a South African public limited company without the issuance of additional shares. For more information on income tax rates and tax deductions for employees, you can also read the Expatica Guide to Income Tax in South Africa. A based companies regime has been introduced to encourage foreign companies to use South Africa as an investment base in Africa. In general, companies with registered office are exempt from withholding tax on dividends, interest and royalties.

In the following, we will give you an overview not only of the corporate tax rates in South Africa, but also of the requirements of the South Africa Revenue Service, accounting procedures and employee taxation. Corporate terminology and corporate tax can quickly become complicated, even if you`re in your territory. If you operate a business in a foreign country, the stakes will be much higher. In order to calculate average gdp-weighted statutory corporate tax rates, the dataset contains GDP data for 180 jurisdictions. When calculating average statutory corporate tax rates, whether GDP-weighted or unweighted, only these 180 countries and territories are included (to ensure comparability of unweighted and weighted averages). Over time, more and more countries have decided to tax companies at rates equal to or less than 30%, with the United States following this trend with its tax changes at the end of 2017. The most significant change occurred between 2000 and 2010, with 78% of countries imposing a legal rate below 30% in 2010 and only 47% of countries in the file imposing a legal rate below 30% in 2000. [15] In addition to annual returns, all corporations (except corporations, block corporations and not-for-profit corporations) are required to file provisional income tax returns (IRP6). The first of these returns must be filed six months after the beginning of the year and the second at the end of the year and must include an estimate of the total taxable income earned or to be earned for that period. The payment of the tax must be attached to the tax return. A third „top-up payment” can be made six months after the end of the year.

CTC is relevant for the tax characterization of distributions by a company based in South Africa. In addition to the Organisation for Economic Co-operation and Development (OECD) countries, Austria, France, the Netherlands and the United Kingdom have announced that they will make changes to their statutory corporate tax rates in the coming years. .

What Is the Current Company Tax Rate in South Africa