INCOME TAX RATES ACT 1986

PART III - RATES OF INCOME TAX PAYABLE UPON INCOMES OF COMPANIES, PRESCRIBED UNIT TRUSTS, SUPERANNUATION FUNDS AND CERTAIN OTHER TRUSTS  

SECTION 23   RATES OF TAX PAYABLE BY COMPANIES  

23(1A)  


This section has effect subject to section 23A .

23(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.

23(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.

23(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


(aa) (Repealed by No 70 of 2015)


(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%.

23(3A)  
(Repealed by No 70 of 2015)

23(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%.

23(4A)  
(Repealed by No 143 of 2007)

23(4B)  
(Repealed by No 143 of 2007)

23(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%.

23(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.

23(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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