no previous
next

CONTENTS

                                                                                                                                   
Part I. — GENERAL DESCRIPTION OF INCOME-TAX SYSTEM  134 
I. Income Tax: 
1. Taxpayers: 
Individuals  135 
Partnerships  135 
2. Taxable Income  135 
3. Assessment of Tax: 
(a) Computation of Taxable Income and Deductions  136 
(b) Computation of Tax and Deductions  137 
4. Collection of Tax  137 
5. Procedure and Appeals  138 
II. Company Tax: 
1. Taxpayers  138 
2. Taxable Income  138 
3. Assessment of Tax: 
(a) Computation of Taxable Income and Deductions  139 
(b) Computation of Tax and Abatements  140 
4. Collection of Tax  140 
5. Procedure and Appeals  140 
Part II. — METHODS OF TAXING FOREIGN AND NATIONAL ENTERPRISES: 
A. Foreign Enterprises: 
1. Definition and General Principles  142 
2. Taxation of Certain Kinds of Income: 
(a) Dividends  142 
(b) Interest  142 
(c) Directors’ Percentages  143 
(d) Royalties for Use of Patents, Copyrights, Trade-marks, Secret Processes, Formulæ and Similar Income  143 
(e) Rents from Real Estate, Mining Royalties and Similar Income  143 
(f) Gain from the Purchase and Sale of Real Estate, Securities or Personal Property  143 
(g) Salaries, Wages, Commissions and Other Remuneration for Services  143 
(h) Income from a Trust  144 
(i) Income from carrying on a Business or Industry  144 
B. National Enterprises  145 
Part III. — METHODS OF ALLOCATING TAXABLE INCOME: 
A. Foreign Enterprises with Local Branches or Subsidiaries: 
I. General Questions and Methods of Apportionment: 
Introductory Observations  146 
(a) Book-keeping and Accounting Requirements  147 
(b) Methods of Allocation  148 
1. Method of Separate Accounting  149 
2. Empirical Methods  149 
3. Method of Fractional Apportionment  150 
4. Requirements for the Selection of Methods and Value of the Various Methods  151 
(c) Apportionment between Branch and Parent Enterprise: 
1. Apportionment of Gross Profits of Local Branch to Real Centre of Management abroad  151 
2. Apportionment of Expenses of Real Centre of Management to Branch: 
Interest Charges  152 
General Overhead  152 
3. Apportionment of Net Profits  153 
(d) Apportionment between Parent Enterprise and Subsidiaries  153 
II. Application of the Methods of Allocation in Specific Cases: 
(a) Industrial and Commercial Enterprises: 
1. Selling Establishments  154 
2. Manufacturing Establishments  155 
3. Processing Establishments  155 
4. Buying Establishments  156 
5. Research or Statistical Establishments, Display Rooms, etc.  157 
(b) Banking Enterprises  157 
(c) Insurance Enterprises  158 
(d) Transport Enterprises  158 
(e) Power, Light and Gas Enterprises  158 
(f) Telegraph and Telephone Enterprises  159 
(g) Mining Enterprises  159 
B. National Enterprises with Branches or Subsidiaries abroad  159 
C. Holding Companies  159 
ANNEX: Table of Tariffs  160 
no previous
next