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INCOME TAX RATES ACT 1986 - SECT 23

Rates of tax payable by companies

          (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--27.5%; 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--27.5%; 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--27.5%; 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--$832; 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--41.25%; 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.



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