Bodies of persons subject to corporate tax:

Companies, Trusts, Trustees of Unit Trust Schemes andNon-resident Sociétés (Partnerships).Trusts, Trustees of Unit Trust Schemes and Non-resident Sociétés are treated as companies for tax purposes.

Tax Rates on Chargeable Income of Companies:

Rate: 15%
Calculation of Chargeable income:
The chargeable income of a body of persons subject to corporate tax is calculated as follows – Gross Income minus allowable expenses.

Alternative Minimum Tax (AMT)

Where the normal tax payable for an income year by a company is less than 7.5% of its book profit, the company should pay either 7.5% of its book profit or 10% of dividends declared in respect of that year, whichever is lesser. "normal tax payable" means the tax payable calculated from the chargeable income of the company at the tax rate applicable to that company after deducting any credit to which the company is entitled except foreign tax credit. book profit" means profit computed in accordance with internationally accepted accounting practices, but does not include: dividends received from resident companies; profits on disposal of fixed assets; and profits or gains from sale of securities.

No account is also taken of:

loss on disposal of fixed assets; and loss from sale of securitie

To companies which have not declared any dividend;

To companies which are exempt from payment of tax; and where the amount representing 10% of dividends declared does not exceed the normal tax payable.

Where a company owns a residential property, the company is liable to pay the NRPT according to the prescribed rates

Due Dates for submission of return and payment of tax

30 September in the year of assessment
(where accounting year ends on a date other than 30 June)

31 January in the year of assessment
(where accounting year ends on 30 June)

Late submission of return - a penalty of Rs 2,000 per month or part of the month up to a maximum of Rs 20,000.
Late payment of tax - a penalty of 5% of the amount of tax excluding any penalty and interest at the rate of 1% per month or part of the month during which the tax remains unpaid.

Where a company does not attach its Profit and Loss Account and Balance Sheet, or any other appropriate statement of account, it shall be deemed NOT to have submitted a return