MANAGEMENT

Detailed explanation-1: -Special domestic corporations and special resident foreign corporations are exempt from MCIT.

Detailed explanation-2: -Minimum corporate income tax (MCIT) on gross income, beginning in the fourth taxable year following the year of commencement of business operations. MCIT is imposed where the CIT at 25% is less than 2% MCIT on gross income. 2 (1% from 1 July 2020 to 30 June 2023)

Detailed explanation-3: -It provides a minimum 15% tax on corporate profit, putting a floor on tax competition.

Detailed explanation-4: -Corporation tax is a tax levied on a company’s net profits. Companies, both private and public, registered in India under the Companies Act will be required to pay corporate tax.

Detailed explanation-5: -Our message is clear: The largest groups of corporations, multinational or domestic, will need to pay a corporate tax that cannot be lower than 15%, globally. The directive has to be transposed into member states’ national law by the end of 2023.