The balance of any tax due is paid or a refund is made in October. Determination of Trading Income Taxable income is the income reported on the companies' financial statements, subject to certain adjustments. Expenses considered indispensable in the production of income or the maintenance of a production unit are deductible. The tax authorities may restrict or disallow the deduction of entertainment expenses they deem to be excessive. Any other special valuation, provided it has the prior authorization of the tax authorities Changes in the method of valuation must be justified and acceptable to the tax authorities.
Any profits resulting from such a change are taxable.
Other provisions imposed by the Government for specific activities Depreciation Maximum depreciation rates are fixed by law for general purposes and for certain specific industries. The following are some of the maximum straight-line depreciation rates fixed by law. Losses Tax losses may be carried forward for three years. No carryback is allowed. Group of Companies There are no provisions for filling consolidated returns.