Corporate income tax rate elections

On 5 May 2006, the Income Tax Division issued Practice Note PN 134/06 which sets out the criteria under which certain companies that are subject to the zero rate of income tax can elect to pay tax at the 10% rate. This facility is being introduced to enable trading companies that wish to retain profits for reinvestment in their business to do so without being subject to the Distributable Profits Charge (DPC). A trading company that elects to pay tax at the 10% rate will be classified as a distri…