Corporate income tax is governed by Corporate Tax Law No. 5520. The tax base is derived from commercial balance sheet profit after adjustments under tax legislation (non-deductible expenses, exemptions, prior-year losses). The annual return is filed in the fourth month following the end of the financial year.
Advance tax is paid during the year and offset against the tax calculated on the annual return.
Source: Corporate Tax Law No. 5520
Related terms
Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.Non-deductible expensesExpenses recorded in calculating commercial profit that cannot be deducted in determining taxable corporate income under tax legislation.Deferred taxTax payable or recoverable in future periods, calculated on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their tax bases.Participation exemptionThe exemption from corporate income tax of dividends a company receives from its holding in the capital of another fully taxable company.Arm's length principleThe principle that transactions between related persons should be carried out at the prices and on the terms that would apply between independent parties with no such relationship.Capital gainGains of individuals from disposing of certain assets and rights that are subject to income tax.
Last updated: October 22, 2026 · This definition is for general information only.