There are two company tax rates, the full company tax rate and the lower company tax rate.
The full company tax rate is 30% and the lower company tax rate is 27.5%. In general, company tax rates apply to companies, corporate unit trusts, and public trading trusts.
There has been a proposed law (Enterprise Tax Plan Base Rate Entities) to apply the lower corporate tax rate to all corporate entities with no more than 80% base rate entity passive income from 2017–18 to 2023–24.
Who is eligible for the lower company tax rate?
First, you need to be classified as a “base rate entity” company. Base rate entities must apply the lower company tax rate for the 2017-18 income year. To be a base rate entity company, you will have to meet the following: Read the rest of this entry »