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The tax rate on the net profit of a non-resident's permanent establishment has been reduced
The tax rate on the net profit of a non-resident's permanent establishment has been reduced
Changes have been made to the Tax Code with the aim of promoting the investment environment and entrepreneurial activities, as well as reducing the tax burden on business entities. The tax rate on the net profit of a non-resident's permanent establishment, withheld at the source, has been reduced.
As is known, last year the withholding tax rate on dividends was reduced from 10% to 5%, and the tax exemption for dividend income of state and local self-government bodies, budget organizations, and public legal entities created on behalf of the state was replaced with a 5% rate. This decision aims to accelerate the process of transforming our country into one with a favorable investment environment in the region, encourage investment in stocks on capital markets, and create a stable and low-tax environment for investors who are not participants in the capital markets. According to the changes that took effect this year, in order to create conditions comparable to those of resident taxpayers, the tax rate on the net profit of a non-resident’s permanent establishment, withheld at the source, has been reduced from 10% to 5%.
Changes have been made to the Tax Code with the aim of promoting the investment environment and entrepreneurial activities, as well as reducing the tax burden on business entities. The tax rate on the net profit of a non-resident's permanent establishment, withheld at the source, has been reduced.
As is known, last year the withholding tax rate on dividends was reduced from 10% to 5%, and the tax exemption for dividend income of state and local self-government bodies, budget organizations, and public legal entities created on behalf of the state was replaced with a 5% rate. This decision aims to accelerate the process of transforming our country into one with a favorable investment environment in the region, encourage investment in stocks on capital markets, and create a stable and low-tax environment for investors who are not participants in the capital markets. According to the changes that took effect this year, in order to create conditions comparable to those of resident taxpayers, the tax rate on the net profit of a non-resident’s permanent establishment, withheld at the source, has been reduced from 10% to 5%.