2005 BUDGET STATEMENT REDUCTION IN TAX RATES


I. INDIVIDUAL TAX RATES
II. NATIONAL RECONSTRUCTION LEVY
III. CORPORATE TAX RATE
IV. WITHHOLDING TAX RATE

The Commissioner of Internal Revenue has the pleasure to inform the general public, particularly individuals and corporate taxpayers that the reduction in the tax rates contained in the 2005 budget statement is to be applied for tax purposes with effect from 1st January 2005. The new rates are:

1. ANNUAL INDIVIDUAL TAX RATES

II. NATIONAL RECONSTRUCTION LEVY

    * CLASS A COMPANIES: From 10% to 7.5%
    * CLASS B COMPANIES: From 7.5% to 5%
    * CLASS C COMPANIES: From 5% to 3.5%
    * ALL OTHER COMPANIES: From 2.5% to 1.5%


III. CORPORATE TAX RATE
From 32.5% to 28%

IV. WITHHOLDING TAX RATE ON GOODS AND SERVICES

From 7.5% to 5%