Passive investment companies tax rate still 30%

The reduce company tax rate of 27.5% in 2018 will be denied for companies with predominantly passive income. Under the changes, companies will qualify for the lower tax rate only if:

• their passive income is less than 80% of their assessable income for the year
   
• they “carry on a business” in that year; and
   
• they come below the aggregated turnover threshold for the year ($25 million for 2017–2018).

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