Taxpayers Mandatorily Subject to the Lump-Sum Profit Regime — Article 44
Mandatory lump-sum profit taxation: Article 44, as an exception to Article 11:
- Life insurance and savings institutions.
- Maritime, land and air transport institutions that are taxable and not exempt under Article 5 of the Income Tax Law.
- Oil refineries.
- Public works contractors.
The taxpayers listed above keep accounting records and declare according to the real profit method, but pay the tax on the basis of lump-sum profit.
Public works contractors are subject to taxation on the lump-sum profit basis at a rate of 10% of the amounts they receive during the calendar year for the works they perform. They are not entitled to benefit from the option provided for in Article 12.
They are mandatorily taxed on the lump-sum profit basis in accordance with the provisions of item (b) of Chapter Three of this section, and they may not request to be taxed on the basis of real 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 vehicles, ships, aircraft and transport insurance | 7% |
| 660306 | Financial loss insurance and credit insurance | 6% |
| 660307 | Reinsurance activities | 5% |
| 602301 | Scheduled land transport, external transport routes | 10% |
| 602602 | Scheduled land transport, domestic transport routes | 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 management of electricity generation plants, public works contractors | 15% |
| 451001 | Demolition of buildings and other structures, public works contractors | 15% |
| 451005 | Other preparatory works such as excavation and site preparation, 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 | Implementation of major construction works, public works contractors | 10% |
| 452007 | Implementation of general construction works, public works contractors | 10% |
| 452009 | Implementation of telecommunications infrastructure works, public works contractors | 10% |
| 452011 | Implementation of railway construction works, public works contractors | 10% |
| 452012 | Road asphalt works, public works contractors | 10% |
| 900001 | Collection, treatment and disposal of household garbage and waste, public works contractors | 15% |