The tax exemption for the reinvested profit is to be extended

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FAQ

1. What is the tax exemption for reinvested profits?

It is a facility through which the gross accounting profit invested in certain new assets is exempt from corporate tax, within the limit of the tax calculated on the invested profit.

2. What period does this facility cover?

The facility is available from 2023 onwards, according to the order of the Ministry of Finance issued last year.

3. Can I apply the exemption quarterly and annually?

Yes. For companies with quarterly profit tax, it is granted upon commissioning of the respective assets; for companies with annual payment, it is granted at the end of the year.

4. Are there any conditions for keeping assets?

Yes, these assets must be kept in the patrimony for at least half of the economic useful life, but no more than 5 years. In case of sale before then, the tax is recalculated and accessories are applied.

5. How can micro-enterprises benefit?

Micro-enterprises that access profit tax may include reinvested profit at the time they become taxpayers, in proportion to the recalculated profit.