The top marginal tax rate would
be lowered from 25% to 22%.
Defined small and medium-sized
enterprises (SMEs) and medium-scale companies (collectively “eligible SMEs”) would
be eligible for the reduced tax rate at 10%, except for the following cases.
A company carrying on
consumption-oriented business (i.e., such as hotels, inns, etc.);
A company whose (1) main
business is the real estate rental business or more than 50% of sales consist
of its real estate rental income, interest, or dividend income, and (2) controlling
shareholder owns more than 50% of total shares in the company.
Tax rate *
Up to 200
Up to 500
only for eligible SMEs)
* Local (provincial) income tax is separately imposed at 10% on
the corporate income tax liability.