INCOME TAX RATES ACT 1986 - SECT 23 Rates of tax payable by companies

INCOME TAX RATES ACT 1986 - SECT 23

  (1A)   This section has effect subject to section   23A.

  (1)   The rates of tax payable by a company, other than a company in the capacity of a trustee, are as set out in the following provisions of this section.

  (2)   The rate of tax in respect of the taxable income of a company is:

  (a)   if the company is a base rate entity for a year of income--25%; or

  (b)   otherwise--30%;

if subsections   (3) to (5) and section   23A do not apply to the company.

  (3)   The rates of tax in respect of the taxable income of a company (other than a life insurance company) that is an RSA provider are:

  (a)   in respect of the RSA component--15%; and

  (b)   in respect of the standard component:

  (i)   if the company is a base rate entity for a year of income--25%; or

  (ii)   otherwise--30%.

  (4)   The rates of tax in respect of the taxable income of a company that becomes a PDF during a year of income and is still a PDF at the end of the year of income are:

  (a)   in respect of the SME income component--15%; and

  (b)   in respect of the unregulated investment component--25%; and

  (c)   in respect of so much of the taxable income as exceeds the PDF component:

  (i)   if the company is a base rate entity for a year of income--25%; or

  (ii)   otherwise--30%.

  (5)   The rates of tax in respect of the taxable income of a company that is a PDF throughout the year of income are:

  (a)   in respect of the SME income component--15%; and

  (b)   in respect of the unregulated investment component--25%.

  (6)   The amount of tax payable by a company (before applying any rebate, credit or other tax offset (within the meaning of the Income Tax Assessment Act 1997 )) must not be greater than 55% of the amount (if any) by which the taxable income of the company exceeds $416, if:

  (a)   the company is a non - profit company; and

  (b)   the taxable income is not greater than:

  (i)   if the company is a base rate entity for a year of income--$762; or

  (ii)   otherwise--$915.

  (7)   The amount of tax payable by a company (before applying any rebate, credit or other tax offset (within the meaning of the Income Tax Assessment Act 1997 )) must not be greater than:

  (a)   if the company is a base rate entity for a year of income--37.5%; or

  (b)   otherwise--45%;

of the amount by which the taxable income of the company exceeds $49,999, if the company is a recognised medium credit union in relation to the year of income.