23Rates of tax payable by companies

23 Rates of tax payable by companies

(1A) This section has effect subject to section 23A. (1) The rates of tax payable by a company, other than a company in the capacity of a trustee, are as set out in the following provisions of this section. (2) The rate of tax in respect of the taxable income of a company is: (a) if the company is a base rate entity for a year of income—25%; or (b) otherwise—30%; if subsections (3) to (5) and section 23A do not apply to the company. (3) The rates of tax in respect of the taxable income of a company (other than a life insurance company) that is an RSA provider are: (a) in respect of the RSA component—15%; and (b) in respect of the standard component: (i) if the company is a base rate entity for a year of income—25%; or (ii) otherwise—30%. (4) The rates of tax in respect of the taxable income of a company that becomes a PDF during a year of income and is still a PDF at the end of the year of income are: (a) in respect of the SME income component—15%; and (b) in respect of the unregulated investment component—25%; and (c) in respect of so much of the taxable income as exceeds the PDF component: (i) if the company is a base rate entity for a year of income—25%; or (ii) otherwise—30%. (5) The rates of tax in respect of the taxable income of a company that is a PDF throughout the year of income are: (a) in respect of the SME income component—15%; and (b) in respect of the unregulated investment component—25%. (6) The amount of tax payable by a company (before applying any rebate, credit or other tax offset (within the meaning of the Income Tax Assessment Act 1997)) must not be greater than 55% of the amount (if any) by which the taxable income of the company exceeds $416, if: (a) the company is a non‑profit company; and (b) the taxable income is not greater than: (i) if the company is a base rate entity for a year of income—$762; or (ii) otherwise—$915. (7) The amount of tax payable by a company (before applying any rebate, credit or other tax offset (within the meaning of the Income Tax Assessment Act 1997)) must not be greater than: (a) if the company is a base rate entity for a year of income—37.5%; or (b) otherwise—45%; of the amount by which the taxable income of the company exceeds $49,999, if the company is a recognised medium credit union in relation to the year of income.