Distributable income rules determine tax treatment of company profits and statutory percentage categories affecting additional tax obligations. Section 109 prescribes computation of distributable income by reducing a company's gross total income by specified taxes, certain deductions, capital ... Summary
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Distributable income rules determine tax treatment of company profits and statutory percentage categories affecting additional tax obligations.
Section 109 prescribes computation of distributable income by reducing a company's gross total income by specified taxes, certain deductions, capital gains losses, income restricted from remittance, statutory banking transfers and enumerated non deducted business expenditures; defines company categories (investment, consultancy service, trading, industrial and others); and establishes a tiered statutory percentage regime that applies different deemed distribution ratios to whole companies or to apportioned parts of gross total income attributable to specified businesses, with procedural apportionment of dividends, distributable income and taxes for Chapter computations.
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