Taxpayers Mandatorily Subject to Fixed Profit - Article 44
Mandatory fixed profit: Article 44, as an exception to the rule under Article 11
- Insurance and savings institutions of all kinds.
- Maritime, land, and air navigation institutions that are subject to tax and not exempt under Article 5 of the Income Tax Law.
- Oil refineries.
- Public works contractors.
The above-mentioned taxpayers keep accounting records and declare according to the actual profit method, but pay the tax on the basis of fixed profit.
- Public works contractors are subject to assessment on the basis of fixed profit at a rate of 10% of the amounts they actually receive from public funds during the calendar year for the works they perform, and they are not entitled to benefit from the option provided for in Article 12.
- They are mandatorily assessed on the basis of fixed profit in accordance with the provisions of paragraph (B) of Chapter Three of this section, and they may not request assessment on the basis of actual profit in accordance with Article 12.
| Activity Code | Activity Name | Net Profit Rate |
|---|---|---|
| 660101 | Life insurance | 5% |
| 660301 | Accident insurance | 6% |
| 660302 | Fire insurance | 12% |
| 660303 | Health insurance | 5% |
| 660304 | Property insurance | 6% |
| 660305 | Motor vehicle, vessel, aircraft and transport insurance | 7% |
| 660306 | Insurance against financial losses and credit insurance | 6% |
| 660307 | Reinsurance activity | 5% |
| 602301 | Land transport of goods, external transport trucks | 10% |
| 602602 | Land transport of goods, internal transport trucks | 15% |
| 611001 | Sea and coastal water transport | 15% |
| 612001 | Inland water transport through rivers and lakes | 15% |
| 621001 | Scheduled air transport | 10% |
| 622001 | Non-scheduled air transport | 15% |
| 401003 | Operation and maintenance of electricity generation stations, public works contractors | 15% |
| 451001 | Demolition of buildings and other structures, public works contractors | 15% |
| 451005 | Other works related to the development and preparation of civil properties and sites, public works contractors | 10% |
| 452001 | Construction of roads and bridges, public works contractors | 10% |
| 452002 | Construction of airports, public works contractors | 10% |
| 452003 | Construction of ports, public works contractors | 10% |
| 452005 | Execution of electrical constructions, public works contractors | 10% |
| 452007 | Execution of water constructions, public works contractors | 10% |
| 452009 | Execution of wired and wireless telecommunications constructions, public works contractors | 10% |
| 4520111 | Execution of railway constructions, public works contractors | 10% |
| 452012 | Road asphalt works, public works contractors | 10% |
| 900001 | Collection, treatment, and disposal of garbage and household waste, public works contractors | 15% |